The bullish rally in the oil market | 10 September 2021

The bullish rally in the oil market


#WTI:


The engine of the U.S. offshore energy industry struggled to recover from Hurricane Ida. Crews have not returned to three-quarters of the evacuated platforms and 93% of oil production and 89% of natural gas remained offline, government data showed. Some wells in the Gulf of Mexico, which accounts for about a fifth of U.S. output, could be shut for weeks, traders said. The Louisiana Offshore Oil Port, the primary U.S. deepwater export terminal, remained closed. The storm cut 1.7 million barrels of oil per day and 1.99 billion cubic feet per day of natural gas output, according to government data. This is a positive signal for oil prices.


Trading recommendation: Buy 67.50 and take profit 70.85.


The bullish rally in the oil market


#SP500:


The S&P 500 and the Nasdaq had scaled all-time highs over the past few weeks on support from robust corporate earnings. Nonfarm payrolls increased by 235,000 in August, well short of the 728,000 forecast by traders. The term "Goldilocks" is often used to describe data that hits the sweet spot; not so dire as to herald economic deterioration or so robust as to cause the Federal Reserve to tighten its dovish monetary policies. The Fed is expected to begin paring bond purchases this year, but is viewed as unlikely to announce a policy change until later this year.


Trading recommendation: Buy 4520 and take profit 4570.


The bullish rally in the oil market


#Gazprom:


Gazprom produced 337.2 billion cubic meters of gas in January–August 2021, which is 17.9 per cent more than in the same period of 2020. The Company increased its gas exports to 131.3 billion cubic meters. Thus, Gazprom is maintaining the amounts of its gas supplies near the all-time high level. This is higher than the figure for the same period of 2020 by 19.4 per cent. According to Gas Infrastructure Europe, the level of reserves in European underground gas storage facilities remained the lowest in many years as of September 5, 2021. This is a positive statistic for Gazprom's shares.


Trading recommendation: buy 311.50 and take profit 320.10.

 

David Johnson
Analyst of «FreshForex» company
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