Oil plunges as OPEC-Russia agreement fails to materialize
Oil prices had their steepest plunge in more than a decade Friday, after there was no indication of an agreement between OPEC and Russia on production cuts.
Brent crude futures contracts for May delivery declined more than -9.4%, or $4.72 per barrel --the biggest one-day decline since 2008. The gauge ended Friday at $45.27 per barrel, which is also the lowest level for the global benchmark since 2016. WTI contracts for April delivery was -10% lower.
OPEC had wanted additional cut of 1.5 million barrels per day, as long as Russia and other non-member states supported the plan with cuts of their own.
OPEC’s statement on had no mention of either deeper cuts, or extending the existing output agreement from 2016, which cuts around 1.7 million barrels per day from the market and is set to expire at the end of the month. OPEC mentioned in the note that member state producers would "continue to stabilize markets".
Risks of an oversupplied oil market could be potentially aggravating, particularly amid the Coronavirus crisis which is hurting global demand for fuel.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
BNO's Stochastic Oscillator is sitting in overbought zone for 2 days
Expect a price pull-back in the near future.
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for BNO moved out of overbought territory on July 27, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 40 similar instances where the indicator moved out of overbought territory. In of the 40 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where BNO declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
BNO broke above its upper Bollinger Band on July 13, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on August 10, 2026. You may want to consider a long position or call options on BNO as a result. In of 92 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for BNO just turned positive on August 11, 2026. Looking at past instances where BNO's MACD turned positive, the stock continued to rise in of 53 cases over the following month. The odds of a continued upward trend are .
BNO moved above its 50-day moving average on August 06, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for BNO crossed bullishly above the 50-day moving average on July 24, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In of 17 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where BNO advanced for three days, in of 327 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 264 cases where BNO Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Industry description
Advertisement
General Information
Category CommoditiesBroadBasket
Advertisement