Editor’s Note: Please ignore the headline of the previous mailing sent today, as the headline contained an error. OPEC+ will not increase production. Instead, it has agreed to stick to the already increased production of 400,000 barrels per day.
Please note that due to market volatility, some of the key levels may have already been reached and scenarios played out.
Trading positions
- Natural Gas [NGG22]
Long around the $4.250-4.300 support area (yellow band) with a stop just below $3.930 and targets at $4.820 & $5.290 – More details in previous Oil Trading Alert. - RBOB Gasoline [RBH22]
No new position justified on a risk/reward point of view. - WTI Crude Oil [CLH22]
No new position justified on a risk/reward point of view. - Brent Crude Oil [BRNH22]
No new position justified on a risk/reward point of view.
Henry Hub Natural Gas (NGG22) Futures (February contract, daily chart)
Regarding risk management, it is always best to define your strategy according to your own risk profile. For some guidance on trade management, you can read one of my articles on that topic.
Did you miss my last article about biofuels to diversify your portfolio? No problem, you can have a look at my selection through the dynamic stock watchlist.
Dear subscribers,
Here is the update of the oil position after the OPEC+ meeting on Feb 2.
Finally, it appears that OPEC+ delegate members agreed to stick to another increase of 400,000 barrels per day. This is a decision despite pressure from top importing countries asking for larger supplies while crude is trading at its highest levels in 7 years.
We all know that additional sources of crude from OPEC+ are difficult since the actual target is already challenging to meet. However, the cartel could've eventually played on its communication to slow the oil market down. The US crude inventories are to be eyed by the market later today to confirm yesterday's API figures (which were finally bullish) or to contradict them.
Best regards,
Sebastien Bischeri
Oil Trading Strategist
