USOIL Price Outlook: Oil is Approaching $ 48 a Barrel

 By Deya Hroob

Oil prices extended their gains today, Thursday, and USOIL  rose more than two dollars, to a session high of $ 47.70 a barrel.

 

Oil prices rose today, with some anxiety emerging in the market after a fire broke out in two wells in a small oil field in northern Iraq, in what the government described as a terrorist attack, but production was not affected.

 

Prices also rose, supported by the launch of an anti-Covid-19 vaccine in Britain and the imminent approval of a vaccine in the United States, which could stimulate a recovery in fuel demand, despite a large increase in US crude stocks last week.

 

Corona vaccination operations may begin soon, perhaps within days, in the United States, as a committee of advisors meets today to discuss whether it will recommend the US Food and Drug Administration to authorize the emergency use of a vaccine produced by "Pfizer" and "Biontech".

 

It said that The vaccine against Covid-19 is a major turning point. Among its many advantages, it will put an end to the decline in demand in the oil market, which has suffered from restrictions imposed by governments on movement."

Technically :

USOIL has been trading above all major moving averages. We have also seen a Golden Cross which indicates a bull market .

 

·        Golden Cross  happens when a short moving averages usually 50-day rises above a long term moving average usually 200-day. ( bullish signal )

·        Death Cross happens  when a short average usually 50-day crosses below a long term moving average usually 200-day. ( bearish signal )

 

When we spot a golden cross , price usually rebounds from 50-day moving average before resuming its bullish way.

The area between 49.45 and 50.25 is expected to offer stiff resistance. If the bulls can push the price above this area, it will open the way to 54.00 level .

Support Levels to watch on the downside :  44.00 ,  Moving averages