empty
InstaForex - Official partner of Dragon Racing
InstaForex - Official partner of Dragon Racing
This section is designed for those who are just starting their trading journey. InstaForex educational and analytical materials will meet your training needs. Our experts' recommendations will make your first steps to trading success simple and clear.
Start as Beginner
How to start trading
Useful information
Training and recordings
InstaForex innovative services are an essential element of productive investment. We strive to provide our clients with advanced technical capabilities and make their trading routine comfortable as we are recognized as the best broker in this regard.
Become Investor
PAMM System
ForexCopy System
Passive investments
Partnership with InstaForex is beneficial and top-tier. Join our affiliate programs and enjoy bonuses, partner rewards, and the possibility to travel with the team of the world-renowned brand.
Become Partner
Main Page
Partner Area
Advantages for Affiliates
Registration
This section contains the most lucrative offers from InstaForex. Receive bonuses when topping up an account, compete with other traders, and get real prizes even when trading in a demo account.
All Promo Campaigns
Bonuses
Contests
Events
Holidays with InstaForex are not only pleasant but also useful. We offer a one-stop portal, numerous forums, and corporate blogs, where traders can exchange experiences and become successfully integrated into the Forex community.
Full details
Forums
We are in social networks
Forex humour
Forex Portal
InstaForex is an international brand created in 2007. The company provides services for online FX trading and is recognized as one of the world's leading brokers. We have won the trust of more than 7,000,000 retail traders, who have already appreciated our reliability and focus on innovations.
Learn More
History
Why Choose Us
InstaSport
Regulation
Company News
Awards
InstaForex Stars
InstaForex Offline
Headquarters
Key documents
Social Responsibility
18.12.2020 12:46 PM
Oil price decline on Friday a necessary correction according to analysts
Open trading account Open demo account

This image is no longer relevant

Crude oil prices slightly declined on Friday morning. However, most analysts warn that there is no need to panic: this is just a necessary correction, which will immediately end, especially since there is still plenty of negative external background. In particular, the price of oil is being pressured by the extremely steady and high growth of daily coronavirus infection in the world. This, in turn, suggests that quarantine restrictions will not be ended in the near future, which will seriously complicate the path to recovery of the economy, which was severely affected by the crisis caused by the COVID-19 pandemic. And the oil market, of course, will not be able to confidently start its recovery yet.

Such unpleasant news somehow did not affect the fact that oil closes in the green zone for the seventh week in a row. Moreover, its growth is so large-scale that some experts have begun to doubt the reality of what is happening. Meanwhile, the positive trend in the black gold market is caused by the very early decision on a new financial incentive program in the United States of America. Analysts almost unanimously agree that the financial assistance package will perfectly support the oil market in the short and even medium-term. And the demand for raw materials can start a more active recovery, which will then be supported by mass vaccination. At least, the process of preparing for it is now proceeding at a rapid pace.

Over the past few weeks, black gold has shown an almost unstoppable increase in value. This was facilitated by several significant factors at once, in particular the long-awaited appearance of a vaccine against coronavirus, a reduction in the level of oil reserves in America, a significant increase in demand in the Asia-Pacific region, as well as a significant weakening of the US dollar. All this together, of course, has become a balm for the oil market. The price of oil has risen sharply and continues to increase its position. If the US Congress can finally agree on the signing of the financial assistance program, the price of WTI crude oil will sharply increase up to $50 per barrel and maybe even higher.

However, the negotiation process on the stimulus package has not yet reached its logical end. There are still quite a few controversial points that cannot be overcome yet. One thing is clear: the total funding is set at $900 billion. According to the latest data, it will include payments to citizens of the country in the amount of $600, as well as additional benefits to payments to those who are on the labor exchange, which will cost around $300 a week. Options for helping small businesses and airlines are still being considered, but so far there are no clarifications on this issue.

The price of futures contracts for Brent crude oil for delivery in February on the trading floor in London fell by 0.62% or $0.32, which sent it to $51.18 per barrel. Thursday's trading ended with an increase of 0.8% or $0.42, and the final price consolidated in the area of $51.5 per barrel, which was the highest value in almost ten months.

The price of futures contracts for WTI light crude oil for delivery in January on the electronic trading platform in New York sank 0.52% or $0.25. Its current value so far was $48.11 per barrel. On Thursday, it gained 1.1% or $0.54, which sent it to $48.36 per barrel. This was also the highest value in the last ten months.

Maria Shablon,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
All Analytics
Technical analysis
EUR/USD. May 23rd. Smart Money System Analysis After the breakdown of the bearish structure, we witnessed a strong rally in the euro, which, as of now, cannot be considered complete. The new bullish structure remains intact
Samir Klishi
20:09 2025-05-23 +02:00
1795
Crypto-currencies
Bitcoin. May 23rd. Smart Money System Analysis Bitcoin continues to form a bullish trend structure. One could argue whether there are real reasons for a new bullish trend at the moment, but the chart suggests only that—unambiguously
Samir Klishi
20:04 2025-05-23 +02:00
1645
Breaking Forecast Trading Plan Cryptocurrencies USD/RUB Russian Economy Video Analysis
Trading Instruments
EURUSD GBPUSD USDCHF USDCAD USDJPY AUDUSD EURGBP EURJPY NZDUSD EURNZD Silver Gold #CL #USDX COVID-19 Bitcoin
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

US Market News Digest for May 23

The May 23 outlook for the S&P 500 suggests consolidation just below the resistance level near 5,908. Under favorable conditions, the index has the potential to rise towards the 6,318
Ekaterina Kiseleva 12:16 2025-05-23 UTC+2

Tech on the Rise: Snowflake, Alphabet Shine as Solar Sector Slumps

U.S. stock markets closed Thursday with little movement, recovering from earlier declines as bond yields dipped from recent highs. This shift came in the wake of the House of Representatives'
Thomas Frank 11:09 2025-05-23 UTC+2

Dow sheds nearly 2% as Wolfspeed, Target, and UnitedHealth drag market into crisis

Indices: The Dow plunged 1.91%, the S&P 500 dropped 1.61%, and the Nasdaq fell 1.41%. Wolfspeed tumbled following reports of a potential bankruptcy. Target sank after cutting its full-year sales
13:01 2025-05-22 UTC+2

US Market News Digest for May 22

Google shares posted a confident advance, driven by positive technical signals. Anticipating a continued uptrend, investors are setting target levels at 176.80, 186.27, and 194.41, making the stock appealing
Ekaterina Kiseleva 12:44 2025-05-22 UTC+2

Dow drops nearly 2% as Wolfspeed, Target, UnitedHealth plunge market into crisis

Indices: Dow down 1.91%, S&P 500 down 1.61%, Nasdaq down 1.41% Wolfspeed falls after bankruptcy report Target falls after cutting full-year sales forecast UnitedHealth falls after secret payment report, HSBC
Thomas Frank 10:06 2025-05-22 UTC+2

The Pound in a Trap: Why UK Inflation Is Scarier Than a US Recession

A new chapter is beginning on the currency market, and the British pound appears to be writing it. April's inflation data came as a real shock to investors: the UK's
Anna Zotova 00:05 2025-05-22 UTC+2

Falling indices, Tesla's surge, and Julius Baer's collapse: a day of sharp contrasts in the markets

Rge benchmark stock indices are falling: * Dow -0.27%, * S&P 500 -0.39%, * Nasdaq -0.38% Tesla is rising after Musk announced his willingness to return as CEO. Home Depot
12:40 2025-05-21 UTC+2

US Market News Digest for May 21

Following a staggering $8.6 trillion rally, the US market is showing signs of fatigue. Despite negative macroeconomic indicators and the recent US credit rating downgrade, Morgan Stanley maintains a bold
Ekaterina Kiseleva 12:23 2025-05-21 UTC+2

The Dollar Is No Longer King. What You Need to Know

Historically, the U.S. dollar has been the primary safe haven during crises such as wars, sanctions, and banking shocks; investors tend to flock to the dollar as their ultimate safety
Anna Zotova 00:59 2025-05-21 UTC+2

US Market News Digest for May 20

Despite the downgrade of the US credit rating and rising Treasury yields, retail investors remain active buyers of equities. Net purchases have surged to a record $4 billion, signaling confidence
Ekaterina Kiseleva 12:16 2025-05-20 UTC+2

Top analytics

Relevance up to 11:00 UTC--4
EUR/USD. May 23rd. Smart Money System Analysis
20:09 2025-05-23
Technical analysis
Relevance up to 12:00 UTC--4
Trading Signals for GOLD for May 23-27, 2025: sell below $3,360 (7/8 Murray - 21 SMA)
18:14 2025-05-23
Technical analysis
Relevance up to 06:00 2025-05-26 UTC--4
Gold Rebounds as Fiscal Risks Resurface
17:31 2025-05-23
Fundamental analysis
Relevance up to 12:00 UTC--4
Trading Signals for BITCOIN for May 23-27, 2025: sell below $108,700 (200 EMA - 21 SMA)
18:16 2025-05-23
Technical analysis
Relevance up to 06:00 UTC--4
XAG/USD. Analysis and Forecast
17:27 2025-05-23
Technical analysis
Can't speak right now?
Ask your question in the chat.
Widget callback
Callback widget
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.