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.
BNO in -1.86% downward trend, declining for three consecutive days on May 30, 2025
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where BNO declined for three days, in of 235 cases, the price declined further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on May 27, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on BNO as a result. In of 94 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
The Moving Average Convergence Divergence (MACD) for BNO just turned positive on May 09, 2025. Looking at past instances where BNO's MACD turned positive, the stock continued to rise in of 52 cases 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 339 cases, the price rose further within the following month. The odds of a continued upward trend are .
BNO may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Industry description
Advertisement
General Information
Category CommoditiesBroadBasket
Advertisement