Crude Oil Prices: A Barometer of Economic Activity
The price of Crude Oil has long been an important determinant of inflation and economic activity. From a political perspective, the price of oil is felt by every citizen when they fill up their cars with gasoline, making it a critical factor in elections. The Organization of Petroleum Exporting Countries (OPEC) controls almost 80% of the world’s supply of oil reserves, setting production levels to meet global demand and influencing oil prices.
The Impact of OPEC on Oil Prices
OPEC is a consortium of 13 countries, including Algeria, Angola, Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, the United Arab Emirates, and Venezuela. These producers and their output are the primary drivers of Crude Oil prices. OPEC’s decisions on production levels significantly impact global oil supplies and prices.
In 2021, Russia and OPEC are cooperating to reduce oil production, which has contributed to rising oil prices. Historically, gasoline prices tend to rise in summer when peak demand occurs. The current surge in oil prices is driven by increased demand for crude oil and refined products, with supply struggling to keep pace.
Forecasting Oil Prices with VantagePoint A.I.
The U.S. Energy Information Administration’s (EIA) has forecasted that Brent Crude Oil prices will average $68 a barrel in the third quarter of 2021 and $60 a barrel in 2022, representing a 20% decline from current levels. Over the past 8 months, Crude Oil prices have doubled.
Analyzing Crude Oil with VantagePoint A.I.
When analyzing Crude Oil, it’s essential to consider various factors, including supply and demand imbalances, industry disruptions, and fundamental analysis. The VantagePoint A.I. forecast uses a proprietary intermarket analysis of correlated assets, neural networks, and machine learning to predict future price movements.
The predictive blue line in the VantagePoint software is a key indicator for traders, showing the medium-term trend direction. Power Traders use this line to determine both value zones and trend directions. The Neural Net Indicator predicts short-term strength or weakness in the market, helping traders make informed decisions.
Intermarket Analysis of Crude Oil
The VantagePoint software analyzes the top 31 drivers of an asset’s price, revealing correlations between different markets and assets. Intermarket analysis is a powerful tool for traders, as it helps identify key drivers of price movements and potential trading opportunities in related markets.
Recommendations for Trading Crude Oil
We suggest using VantagePoint A.I. to fine-tune entries and exits into the market. The software updates daily at 6:30 pm, providing traders with real-time forecasts based on machine learning, neural networks, and intermarket analysis. Traders can use these tools independently or together to identify high-probability trading opportunities.
The Future of Crude Oil Prices
Goldman Sachs expects Crude prices to average above $80 in the third quarter of 2021, with surges "well above" that level as demand recovers. OPEC is benefiting from higher oil prices and recouping some of the revenue lost last year. We anticipate that the A.I. will be closing out or LONG positions shortly and look to get back in on the next UP forecast.
Disclaimer
Trading involves a high degree of risk, and it’s not prudent or advisable to make trading decisions beyond your financial means or involve trading capital you are not willing and capable of losing. VantagePoint’s marketing campaigns do not constitute trading advice or an endorsement of any trading methods, programs, systems, or routines.
Conclusion
Crude Oil prices continue to be a crucial barometer of economic activity. The price of oil is influenced by various factors, including OPEC’s decisions on production levels and the current surge in demand for crude oil and refined products. We recommend using VantagePoint A.I. to analyze Crude Oil prices and identify high-probability trading opportunities. However, traders must be aware of the risks involved and trade responsibly.