Weekly Oil Report: Crude Oil Surprised the Market

Oil moved up surprisingly up last week after two unexpected events.

• DXY devaluation
• Stocks rise

DXY dropped during the week after some new financial reports, including Nonfarm Payrolls that was bearish for the market. With the dollar losing value consistently, commodities touch higher prices. It is for about three weeks that the dollar is depreciating and daily candles tend to decrease more. DJI and S&P Index were on a rising trend and the increase helped commodities move higher. On Monday 10 May, stocks are still seeking better prices. Brent and WTI also started the week with a gap. Brent is $68.70 at the time of writing this article but the market is indecisive. It seems that the oil market is neglecting the fear of the covid-19 pandemic and Iran-US negotiations. Meanwhile, the stable decision of OPEC has helped the market to get the consensus on rising demand in summer. Powered by the Goldman Sachs estimation for oil to reach $80. The daily candlesticks of Brent chart show that prices above $68 are not attractive for the traders yet. Although Infinity Galaxy expects a higher price for mid-term OPEC and WTI, it does not expect a strong rally unless the market becomes eager about the current prices.