Home Markets News Weather

ZYTrade Technical Snapshot - Crude Oil Futures (CL) - The End of Oil's Demand Inelasticity?

« Go Back

In a striking contrast to peak oil fears just a little over a decade ago, the oil industry, according to a new study by BP, may have seen peak demand of around 100 million barrels a day in 2019. In all three of BPs three projected scenarios, its downhill from there, demand falling to 55 million barrels daily by the next decade--never to reach pre pandemic levels. The reason: electric vehicles are quickly becoming the new standard. Another term for this: creative destruction, with the oil industry on the receiving end of a severe, possibly terminal, disruption.

Should any of BPs forecasted scenarios pan out, the impact will be global; their potential effect on countries that rely on oil revenue...potentially devastating.

In our view, the best case scenario--business-as-usual--sees potential resistance at [2] between the 62.00 and 75.80 range. Near-term resistance stands at 43.00. Near-term support is at 36.00.

Trading futures, options on futures, and forex involves substantial risk of loss and is not suitable for all investors. The use of leverage is not suitable for all investors and losses exceeding your initial deposit is possible. Carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources and only risk capital should be used. Opinions, market data, and recommendations are subject to change at any time. The lower the margin used the higher the leverage and therefore increases your risk. Past performance is not necessarily indicative of future results.

« Go Back

Real-time Login
     Get Real-time Data
Edit Preferences      Refresh:   On   Off