Daily Alert – Tuesday 23rd November 2021: Markets await oil reserves announcement
Good morning traders.
US President Biden has confirmed Jerome Powell for a second term as Fed Chair. Wall Street seems relaxed about this choice. The US 10-year yield rose, and equities fell, as expected due to Powell being the more hawkish of the two candidates.
Today is interesting. We have a host of PMI numbers due in the next few hours. These can move the market.
There may be a co-ordinated announcement from the US and others regarding the use of strategic petroleum reserves to combat increasing energy prices. OPEC are watching and saying they may “react”. WTI is floating around its 100MA support. I think risks are skewed to the upside. By that, I mean, the recent fall in oil prices is due to sentiment (more Covid lockdowns in Western Europe) and the reserves issue. Both are reflected in the price. Unless the reserves issue is unexpectedly dramatic, I think a reversal of the fall is the most likely outcome over the next week or so. That’s why I say, “skewed to the upside”. I certainly hope so as I am long on WTI as of yesterday and the trade is currently under water.
We’ll be back tomorrow.
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