Oil prices happily rise 3%. Goldman Sachs: Brent oil is expected to rise to $80 (with trading strategy)
U.S. oil has returned to the $66 mark, and G7 is close to reaching an agreement on taxation rules for multinational companies; has the prospect of the next wave of oil price increases become clearer?

International oil prices rose by more than 3% on Monday, as market concerns about Iranian crude oil returning to the market eased. London Brent crude oil futures closed at US$68.46 per barrel, an increase of 3%, and July US crude oil futures closed at US$66.05 per barrel, an increase of 3.9%.
Oil prices rose by more than 3% overnight, and Iranian nuclear negotiations are still continuing. The market is very optimistic about the demand side and believes that Iranian crude oil flowing into the market will not cause oversupply. Goldman Sachs predicts that even if Iranian crude oil enters the market, Brent crude oil will rise to $80 in the fourth quarter.
Tyler Richey, co-editor of Sevens Report Research, pointed out that due to Iran’s non-cooperation and U.S. Secretary of State Antony Blinken also questioned Iran’s ability to comply with its promises, “it reduces the possibility of reaching a new agreement, so it is unlikely that sanctions will be lifted in the near to midterm.”
Blinken stated in the media that the US has not yet seen "Iran is ready and willing to implement what it should do to lift its sanctions.”
Negotiations between Iran and world powers are still ongoing, and occasional reports of progress have been reported. Richey pointed out that last week the price of crude oil fell because of the expected increase in the new nuclear agreement.
According to media reports, the International Atomic Energy Agency (IAEA) said on Monday that Iran notified the UN nuclear watchdog agency that it would extend a monitoring agreement for one month. The Speaker of the Iranian National Assembly announced on Sunday that the monitoring agreement had expired, causing the public to question Iran’s efforts to restore the nuclear agreement.
The U.S. and Iran have been negotiating the return of the U.S. to the JCPOA agreement and Iran’s renewed compliance with the nuclear agreement through indirect negotiations centered on Europe. Warren Patterson, director of commodity strategy at ING, said, “Once the United States returns to the JCPOA agreement, it may dampen oil market sentiment, but we still believe that the market has the ability to absorb Iran’s increased supply, so price weakness should be a short-lived phenomenon.”
At the same time, U.S. stocks rose on Monday. Sevens Report Research co-editor Tyler Richey pointed out, “The market is generally optimistic about the progress of the economic restart, especially in the United States. This sentiment boosted all risk assets on Monday, especially oil and refined oil. Because traders are looking forward to the weekend holiday (Memorial Day) to unofficially predict the approach of the summer driving season."
Other energy price:
June gasoline futures prices rose 2.4%, closing at nearly $2.12 per gallon.
June thermal oil futures prices rose 2.7% to close at US$2.04 per gallon.
June natural gas futures prices fell by nearly 0.7%, closing at nearly $2.89 per million Btu.
Trading strategy (Source: Trading Central)
Pivot: 64.90
Our preference: long positions above 64.90 with targets at 67.35 & 68.00 in extension.
Alternative scenario: below 64.90 look for further downside with 64.30 & 63.45 as targets.
Comment: the RSI shows upside momentum.
Supports and resistances:
68.70
68.00
67.35
66.20 Last
64.90
64.30
63.45
Guideline for Trading Central strategy
Trend chart reading guideline
1. First look at the time period in the upper left corner of the chart:
‧30MIN and 1H chart shows the trading suggestions for intraday
‧Daily chart shows the market trend analysis in next 2-3 days
2. The blue horizontal line on the chart marks the pivot: pivot indicates the reversal of the market. When the price is above the pivot, it indicates an upward trend, when the price is below the pivot , it indicates a downward trend. When the price breaks through the pivot, the trend is reversed.
3. The red and blue thin curves in the Candlestick chart chart are technical indicators: Red line is MA20+Bollinger bands, Blue line is MA50. under the Candlestick chart chart are also the technical indicators: Blue line is RSI, Red line is 9MA;
4. The green horizontal line is the resistance level for a price increase, and is also the profit target for long orders; the red horizontal line is the support level for a price decrease, and is also the profit target for short orders.
How to use TC strategy?
1.[Pivot] is the reversal line of the market trend. When the price up the pivot line which means in Bullish, you can open a long position or Buy. on the contrary, when the price under pivot line which means in bearish. You ‘d better make short positions or Sell.
2. [our preference] is the main trading suggestion for your reference. You can exit your trading refer to this target or close positions before it.
3. [Alternative scenario] is the plan B for your reference.
4. [Comment] is the technical analysis of market trends and technical support for trading strategies.
5. [Supports and resistance] Supports are levels where the price tend to find support as it falls.
Resistances are levels where the price tend to find resistance as it rises. So, exit before the trend reverse.
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