OPEC and Russia to Meet for Discussing Oil Prices | DZHI - DZH International 
logo

OPEC and Russia to Meet for Discussing Oil Prices

  • DAR Wong
  • 2 December 2019

CURRENCY MARKET OBSERVATIONS – 2 December 2019

 

OPEC and Russia to Meet for Discussing Oil Prices

Fundamental Outlook   The U.S. President Trump signs the bill into law for backing the protestors in Hong Kong. Bejing Government has strongly rejected the action and vows on strong counter-measures for this new law.

The U.S. economy grew 2.1 percent in Q3 seasons at moderate pace and higher than forecast. However, Trump may face more challenges in 2020 election as strong candidates like media moguls Robert Johnson and Michael Bloomberg emerge from Democratic Party. 

Chinese tech giant Alibaba listed in Hong Long on last Tuesday and gathered regional focus from investors. Stock prices opened at HKD187 and surged past HKD200 on second day trading.

German Chancellor Merkel wants European members to make a joint stance on China and 5G technology. She warns of possible dispute among European countries if all adopt different approach in embracing the telecom network technology.

Terrorist attack on London Bridge occurred on Friday and hurt 3 casualties while 2 died. Police shot the terrorist armed with knife and an explosive vest worn on body. Politically, British PM Johnson aims to win the general election on 12 December and vows to execute the BREXIT before 31 January.

OPEC and Russia will meet at Vienna next week and probably discuss on continual production cut in 2020. Saudi Arabia also favors higher oil prices in preparation for the coming IPO for its state enterprise.

 

Technical Forecast   USD/JPY rose moderately and settled on the high side 109.50 before weekend. This week, we foresee dual possibilities in market trend that is on either directional headway. In case of heading down, the trend may be contained from 108.00 – 109.50 region, otherwise piercing above the 109.50 resistance may climb higher to test 111.00 level.

 

EUR/USD has been loitering around 1.1000 region for consolidation. This week, we project a possibility in rebound but limit to small range. Trading movement will be contained from 1.0950 – 1.1100 region and likely to be influenced by Dollar Index (USDX) trend. Risk control is advised in case the trend falls beyond 1.0950 support.

 

GBP/USD is generally limited to 1.2800 – 1.3000 range while waiting for the election outcome in December. Technically, we prefer to exercise patience in find a market entry at the current moment due to much uncertainty. However, risk control in advised in case the trend extends beyond this range and moves against your favor.

 

Gold prices have been trading in narrow sideways trend and exhibited a recovery on Friday. This week, the trend might move into a recovery while Dollar weakens. Yellow metal is prone to climb higher but within the range of USD1450 – USD1490 /oz. however, beware of the trend dropping off USD1450 /oz support that could be landing lower at USD1410 /oz level.

 

WTI Crude prices have disappointed many traders due to its weak thrust. After the market failed to protrude above USD58 /barrel, the overall movement is constricted from USD55 –USD58 /barrel. This week, we foresee no change in the market sentiment but traders need to prepare their risk management in case of violation beyond the aforementioned range.

 

Silver prices traded unchanged last week as we predicted. Range is contained from USD16.80 – USD17.30 /oz as trading activity simmers down. This week, the market may tend to rise slight higher at USD17.60 /oz due to leading strength in yellow metal. Selling pressure is expected to emerge above USD17.80 /oz and towards USD18.00 /oz level.

 

Crude Palm Oil (FCPO) Futures on Bursa Derivatives traded sideways as profit-taking emerged in market last week. Analysts forecast production will cut in near future and lift demand for palm oil. February20 Futures contract closed at RM2743 /MT on Friday and almost unchanged from previous week. Moving forward, we predict the market will be capped beneath RM2800 /MT in case of further rise. Correction is possible to dive the trend at RM2650 /MT region.  

 

DAR Wong has 30 years of trading and hedging experiences in global financial markets. The opinion is solely at his own.  He can be reached at dar@pwforex.com


About the Author
DAR Wong (Singapore)
An international speaker with 27 years of trading experience in the global financial markets, DAR is a Market Master and author of “Living Daylight in Stock Market: Monetizing Your Profits in 8 Days”.

DAR Wong is an active market trader, registered fund manager, educator and author.He began his career in 1989 as an institutional Futures trader with Bank of America. DAR Wong specializes in trading global derivatives and financial markets. He has 26 years of experience accumulated through tenure with Bankers Trust, Barclays Bank, Citigroup (Smith Barney Shearson Inc) and as an independent trader.

DAR is the author of “8 Ways to Invest in China’s Emerging Market” and contributes frequently to regional media, including financial TV/Radio programmes, newspapers and magazines for professional traders and active investors.

He is a popular and sought after international speaker who has presented to financial professionals and investors throughout the region including Singapore, Malaysia, Indonesia, Thailand, Hong Kong, China, Cambodia, Myanmar, Philippines, Sri Lanka, India, South Korea, Laos, Vietnam, United Kingdom and Middle East (UAE).

DAR is registered with NASD (now known as FINRA) series 3 and 5 as approved by National Futures Association (NFA) of USA and holds a current portfolio as Fund Strategist and Advisor with Dektos Investment registered with Monetary Authority of Singapore.

DAR is profiled as “One of the most successful traders – Market Masters” in Brent Penfold’s bestselling book “The Universal Principles of Successful Trading “. In January 2015, DAR was honored with Outstanding Award for International Financial Market Analysis granted by ASEAN Commerce (Thailand).

DAR is the author of "8 Waysto Invest in China's Emerging Market" and contributes frequently to regional media, including financial TV/Radio programmes, newspapers and magazines for professional tradersand active investors.1

He is a popular and sought after international speaker who has presented to financialprofessionals and inverstors throughout the region including Singapore, Malaysia, Indonesia, Thailand, Hong Kong, China,Cambodia, Myanmar, Philippines, Sri Lanka, India, South Korea, Laos, Vietnam, United Kingdom and Middle East(UAE).2


Year
2003 - Set up ASPRI to provide hedging advisory for corporate clients and training for financial professionals
2009 - Released first book “8 Ways to Invest in China’s Emerging Market”
2010 - Profiled as “one of the most successful traders – Market Masters” in Brent Penfold’s bestselling book “The Universal Principles of Successful Trading” along with Larry Williams, Andrea Unger, Michael Cook, and Daryl Guppy etc
2011 - Received “Spirit of Enterprise”awarded by Singapore Management University in Singapore
2012 - Honored with Individual Diamond Career (Thailand) awardedby Royal Privy Council of Kingdom of Thailand
2013 - Appointed Vice Chairman of ASEAN-China Commerce Association and led a delegationtothe annual China-Asean Expo in Guangxi Province, China
2014 - Fund Manager cum Director in Dektos Investment Corporation registered with Monetary Authority of Singapore
2015 - Released new book “Living Daylight in Stock Market - Monetizing Your Profits in 8 Days” in January
2015 - Honored with Outstanding Award in International Financial Market Analysis awarded by ASEAN Commerce (Thailand)
2016 - Honored with Medal of Integrity by Royal Councilin Palace of Palembng, Indonesia

References

1.TV programs on ChannelNewsAsia (Singapore);Radio on 95.8 Capital (Singapore); Newspapers such as The Borneo Post (Malaysia), 资汇报 (Malaysia); Regional financial magazines such as The Analyst (India), 东盟商界(ASEAN, China), 资本杂志 (Malaysia).

2.Spoke at events for CME Group, Euronext LIFFE, Tokyo Commodity Exchange, Singapore Exchange, Korea Exchange, Bursa Malaysia, Thailand Futures Exchange, Jakarta Futures Exchange, Indonesia Commodity and Derivatives Exchange, Tokyo Commodity Exchange, Interactive Brokers, Xinhu Futures, Hangzhou Money Fair, China (Shenzhen) International Finance Expo, China (Guangzhou) International Finance Expo, Euromoney, CIMB, Maybank, RHB, UOB Bank, Asia Trader & Investor Convention, Global Rubber Conference, International Rubber Conference, Malaysia Rubber Board, International Rubber Research and Development Board,Malaysia Ministry of Agriculture, Rubber Industry Smallholders Development Authority, Vietnam Rubber Association, Cambodian Rubber Association, Bureau of Agriculture Research Philippines, Myanmar Rubber Planters & Producers Association etc.