Strategy to earn by betting on oil

The Petroleum she is one of the illustrious victims of the coronavirus crisis. Here it is not a question of panic but of a real negative impact on the consumption of black gold. The crisis caused tourism to collapse with the consequence of the collapse of reservations on planes that cancel flights. Worldwide production is reduced, which reduces the transport of things and vehicles. There China, among the major oil consumers, I travel at a slower pace, not to say worse. Stocks are increasing and the oil tankers stand still off the coast of the United States because they cannot deliver. For those who sell oil, it is enormous economic damage.

OPEC decides on a cut to support crude oil prices

To remedy the drop in oil prices, OPEC ministers, the cartel of the major producers, gathered in Vienna are looking for a solution. The response to the coronavirus emergency goes through one production reduction crude oil of 1.5 million barrels per day. This seems to be the choice that will eventually emerge even if it is still being discussed. Bloomberg, thanks to the indiscretions of some delegates present at the meeting, argues that the decision is taken, even if only official will be at the end of the summit.

Strategy to earn by betting on oil

The prices of the WTI for now they do not seem to be affected by indiscretions and travel on the levels of $ 45 a barrel, on the lows since December 2018. From this level they have only two paths, the bullish one, driven by an imminent recovery of the world economy and by the cut in production. The bearish one, in case the world economic crisis proves worse than expected. In the first case the prices would have like first goal $ 52 and above $ 60, an area they occupied at the end of December 2019. Conversely, if prices were to drop below $ 45 they would head to area 40 and below around 30 dollars, as in February 2016