Oil Analysis: May 21, 2021 - US vs Iran Conflict Melting, Lowers Oil Prices

Today's oil daily analysis on May 21, 2021 will discuss the price movement of crude oil in last Thursday's trading which is still declining to the lowest level. The decline in oil prices is due to the beginning of the thawing of the conflict that occurred between the United States and Iran. The easing of this tension is assumed by market participants that it will again flood the oil supply market from Iran. As we know, this tension is regarding negotiations on Iran's nuclear possession with European countries and the United States. In today's market trading, it is predicted that oil prices will continue to decline. In addition to concerns that Iranian oil production will fill the market, the profit-taking action of market participants also plays a role in lowering prices. Another factor that caused the decline in oil prices was also due to the still abnormal global demand for fuel oil due to the impact of the Covid-19 pandemic. The easing of the perception of tapering that will be carried out by the Fed caused the strengthening of the US Dollar that occurred yesterday to begin to run out of steam and return to its weak level. The weakening of the US Dollar was also followed by a decline in US government bond yields for long-term tenors. This subsided because the tapering plan was revealed before the release of the labor data that was released was disappointing. After the US Central Bank's statement began to subside, it also dragged down the value of bond yields by 10 years. It is undeniable that the condition of the US Dollar is affected by the rise and fall of US bond yields. Since the beginning of 2021, bond yields and the condition of the US Dollar have been an inseparable unit, where if yields rise, the US Dollar will strengthen, and vice versa.

Oil Daily Analysis Predictions

Today's prediction in OIL is expected to continue its decline, and the recommended OP (Open Position) is SELL at the level of 61.80. With a Target Profit (TP) of 10 - 20 points and a Stop loss (SL) of 5 - 10 points.
This the daily oil analysis on May 21, 2021 regarding the thawing of the US vs Iran conflict lowered oil prices. Keep Money Management and Risk Management a priority in your trading. Visit GIC Indonesia to get information about the world of trading. You can also join us in the GIC Trade Telegram Community and GIC Trade Telegram Channel. Don't forget to check out the GIC Indonesia Youtube account which is full of a lot of information, and follow our Instagram account to get information about various interesting webinars that you can participate in.