2022/03/11 (018) Technical Analysis – UKOIL

FED Powell Puts The Brakes On Recovery Stock Market Rally
– Nevertheless, Oil Stocks And Or Apple i.E. Stayed Very Strong.
While Oilprices Continues To Rise, Approaches 115 USD


FED Powell Puts The Brakes On Recovery Stock Market Rally

After it looked at the start of US trading on Monday as if Wall Street could continue the five-day winning streak from the previous week, current statements by Fed boss Jerome Powell on future monetary policy have pushed the major indices into the red. They couldn’t recover from it until the close of trading.

The US leading index Dow Jones ended trading around 0.6 percent lower at 34,552.99 points. The market-wide S&P 500 closed almost unchanged at 4,461.18 points, down 0.04 percent. The Nasdaq Composite fell 0.4 percent to around 13,838.46 points. For the US stock market, this means the abrupt end of the five-day recovery rally that had given the three leading indices the best week since November 2020 the previous week.

In the afternoon, Fed Chair Jerome Powell declared that inflation in the US was “far too high” and that the central bank might have to take even more decisive action to counteract it. In concrete terms, the key interest rate could – if necessary – be increased more than previously planned in future interest rate increases, for example.

Our Trading Capability Thus Took Off Faster Than Excepted

On Tuesday, the 15th February, in the 3rd Edition, of our DEVISE 2 DAY Affiliate Financial Market Online Newsletter, i formulated a trading capability in the UKOIL – incl. with an entry price (93 USD), target price (130 USD) and or stop price (84 USD). In this case, UKOIL reached our target price. Everything i wrote was and or everything i`m still writing is no an investment recommendations. But, in the truest sense of the word, a trading capability for self-deciders. All my readers decide for themselves whether to trade something or not – regardless of my opinion. Because my DEVISE 2 DAY Affiliate Financial Market Online Newsletter is 100% commercially with 100% the best of my knowledge and beliefs. I always encouraging you to get better informed – to stay even 100% informative. So that you can better decide for yourself (not) act – buy/sell whatever you want.

Oil Stocks And Apple In Demand

Among the individual stocks, oil companies such as Chevron (+1.8 percent), Occidental Petroleum (+8.4 percent) and Marathon Oil (+8.5 percent) were once again among the biggest winners on Monday. The reason for this is the sharp increase in oil prices.

Apple’s stock rose by around 0.9 percent despite reports of a large-scale outage of important subscription and service providers. She was also one of the winners in the Dow.

Meanwhile, Boeing shares, the biggest loser in the Dow Jones, lost around 3.6 percent. The reason for this is the crash of a 737 aircraft in China. In the Nasdaq, the shares of the Chinese Internet companies Pinduoduo (-6.1 percent) and JD.com (-5.7 percent) listed there again led the list of losers.

Brent Continues To Rise, Approaches 115 USD

Brent crude futures surged more than 7% to approach $115 a barrel on Monday amid reports that some EU countries would favor a ban on oil imports from Russia. Baltic countries including Lithuania want an oil embargo, while Germany and Italy, which depend on Russian gas, are wary of acting too quickly because of already high energy prices, according to Reuters. Meanwhile, the Ukraine conflict showed little signs of easing with Ukraine resisting heavy Russian attacks and refusing to surrender the city of Mariupol. Also, attacks by the Houthi group caused a temporary fall in output at a Saudi Aramco. Last month, OPEC+ missed its production target by more than 1 million barrels per day in February as an already tight market braces for major Russian disruption.As a result of the Russian invasion of Ukraine, more and more countries around the world are turning away from supplies of resources from Russia – this applies above all to gas and oil. So that the supply of the important fossil fuel does not run out, other countries must now fill the gap. Germany has so far obtained most of its imported oil from Russia, but a reorientation is imminent. There are currently around 108 billion barrels of oil reserves in Russia, as the Statista chart with data from BP shows. About six percent of the world’s oil reserves lie dormant under the soil of the Russian Federation. Despite the economic isolation, there is no need to worry about fuel shortages. The amount of oil stored in Russia ranks sixth in the world. The world’s largest reserves are in Venezuela – there were around 304 billion barrels there in 2020 (18 percent of global reserves). Saudi Arabia (298 billion barrels) owns a similar amount of “black gold”, followed by Canada (168 billion barrels), Iran (158 billion barrels) and Iraq (145 billion barrels).

Our German Oil Reserves, Even In My Homeland, At An All-Time Low

In response to the Ukraine war, the German government released oil from the strategic reserve. Even before Russia attacked the country, German reserves were at their lowest level since 2015. For 90 days, the strategic oil reserve is intended to guarantee Germany’s supply in the event of a crisis. Even before the Ukraine war, it had reached its lowest level since 2015. On January 31, 2022, 22.6 million tons of crude oil, fuel and heating materials were stored, the Hamburg Senate announced in response to a small inquiry from the AfD parliamentary group. On March 31, 2021, stocks were still 23.3 million tons of crude oil equivalent.The lowest level up to that point was reached on March 31, 2018 with 22.7 million tons, the highest in March 2016 with 23.6 million tons of crude oil , fuel and heating materials were stored in tanks and caverns.

A Less Volatile Oil Price Is Not To Be Expected

In the past four weeks, the price of a barrel (159 liters) of Brent has increased by almost 20 percent, amid major fluctuations. Russia is one of the largest oil producers in the world, so market players fear that a shortage of Russian supplies could cause bottlenecks on the world market. This risk and the speculation about possible supply difficulties has driven oil prices up overall. While the USA and Great Britain want to get rid of Russian crude oil, the EU has not yet taken this step because of its high dependence on Russian energy imports, even though an oil embargo has recently been discussed became.