Crude Oil Declines as the US Dollar Holds, Aiming for US Debt Outcome. Notwithstanding the potential for the debt ceiling problem, stays within limits

Crude oil Key points

After attempting to rise, the price of crude oil today declined within the range.

The debt ceiling agreement looks to be moving towards a settlement.

Adjustments in the US Dollar could affect the direction of crude.

Crude Remains in a tight range

Despite the possibility that the debt limit problem would be handled this week The price of crude oil declined on Tuesday but is still within a certain range.

According to reports, US President Joe Biden and House Speaker Kevin McCarthy. Who both are aggressively urging senators to make a vote in support of the debt ceiling accord on Wednesday.

The very brief end of the bond market is where markets have seen the biggest respite. The 6-June T-Bill has returned to its previous level before the markets got worried by the debt ceiling issue. This past week, it reached a top of 7.10%, but now it is trading at about 5.15%.

Traders in the crude oil market have begun to concentrate on the OPEC+ summit which will begin on June 4.

The member nations have sent out a few divergent messages, but there is anticipation that another output cut may be on the table. Earlier in April, as they reduced, the crude oil price gaps upward.

Currently, the Brent contract remains slightly higher than US$ 76.50 barrel and the WTI contract for futures is under US$ 72.50 bbl. Spot gold is now trading at US$ 1,940 and is slightly weaker overseas.

Technical Perspective

For the past three weeks, the West Texas Intermediate crude oil price has been trading in an area between 69.41 and 74.73. Which is comfortably inside the wider range witnessed over the previous six months.

With multiple fake breakouts, the current range trading scenario has been challenging for traders. When it happens, the price will have just reached a fresh record high or bottom. When it will suddenly shift back into the range.

The prior top of 74.73, 76.92, and 79.18 may serve as resistance. Support could be located at the prior low points at 69.41, 66.82, 66.12, 64.36, 63.64, and 62.43 on the negative.

Brent

One barrel of Brent crude oil costs 76.45 dollars. The price spectrum for today: 76.18 to 77.74. The decrease from the prior day’s closing of 76.95 was -0.50, or -0.65%.

Oil Price Projection by each Day