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US English

Oil stable as Omicron fears fade

By Jenal Mehta

11:38, 13 December 2021

Gas workers against the sunset
Oil prices stabilise as Omicron worries subside – Photo: Shutterstock

After recovering more than two-thirds of its value, oil has stabilised in a narrow range in the past seven days.

Brent Crude Oil has been trading between $76 and $73 per barrel, while US Crude Oil moved between $73 and $70 in the past week.

Concerns about the effects of the Omicron variant have mostly subsided as news emerged about booster shots being effective in protecting against the virus.

The US Department of Energy issued a notice on 10 December about selling 18 million barrels of crude oil on 17 December. This is part of the ongoing plan to reduce energy prices that was set out by the set out by the White House in November. The first exchange of 4.8 million barrels has also been approved.

Six-month oil price chart Six-month oil prices – Credit: Koyfin

US Natural Gas traded just under $4, having remained in the $3.50 to $4.50 price range since the beginning of December.

Gas price gains remain limited due to the low demand expected during upcoming warmer weather in the US.

The US Energy Information Administration expects US exports of liquified natural gas (LNG) to continue to increase in 2022, and to be the largest in the world.   

Natural Gas

2.38 Price
-5.860% 1D Chg, %
Long position overnight fee 0.1050%
Short position overnight fee -0.1269%
Overnight fee time 22:00 (UTC)
Spread 0.0050

Oil - Brent

75.85 Price
-0.080% 1D Chg, %
Long position overnight fee -0.0174%
Short position overnight fee -0.0045%
Overnight fee time 22:00 (UTC)
Spread 0.032

Silver

22.94 Price
-0.270% 1D Chg, %
Long position overnight fee -0.0204%
Short position overnight fee 0.0122%
Overnight fee time 22:00 (UTC)
Spread 0.020

Gold

1,993.60 Price
-0.590% 1D Chg, %
Long position overnight fee -0.0199%
Short position overnight fee 0.0117%
Overnight fee time 22:00 (UTC)
Spread 0.50
Six-month gas prices Six-month natural gas prices – Credit: Koyfin

Performance

Brent Crude Oil

  • Day range: $75.12 to $76.39
  • 52-week range: $49.13 to $86.70
  • 52-week price change: 50.39%
  • 10-day Exponential Moving Average (EMA): $74.59
  • 14-day Relative Strength Index (RSI): 45.76

US Crude Oil

  • Day range: $71.63 to $73.00
  • 52-week range: $45.69 to £83.83
  • 52-week price change: 53.90%
  • 10-day Exponential Moving Average (EMA): $71.14
  • 14-day Relative Strength Index (RSI): 45.71

US Natural Gas

  • Day range: $3.95 to $4.02
  • 52-week range: $2.26 to $6.47
  • 52-week price change: 50.10%
  • 10-day Exponential Moving Average (EMA): $4.08
  • 14-day Relative Strength Index (RSI): 39.46

 

Read more: BP share price forecast: Where next for the energy giant?

 

Markets in this article

Oil - Brent
Brent Oil
75.847 USD
-0.058 -0.080%
Oil - Crude
Crude Oil
71.267 USD
-0.063 -0.090%
Natural Gas
Natural Gas
2.3770 USD
-0.1475 -5.860%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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