Crude Oil Increased on expectations of a debt ceiling accord, Oil prices increased somewhat as hope for a US debt ceiling deal increased.
Crude oil Market looks for debt ceiling solution
After what appeared to be promising developments following the meetings involving President Joe Biden & Kevin McCarthy. Crude oil made out modest gains to begin Tuesday.
Both sides declared that a default is not anticipated following the North American closure. In addition, McCarthy noted that the discussion was “productive on topics wherein there’s a difference of views.”
Following an uneven Monday which saw the Nasdaq rise 0.50% and the Dow Jones index fell 0.42%. The Wall Street futures are pointing to a good beginning for its cash period. It appears that the Nasdaq’s well-known IT companies are still popular.
The majority of APAC stocks are down, while the ASX 200 in Australia showed some life. After declining, Japan’s TOPIX index reached a new 33-year top.
Till the US debt crisis is handled, currency markets have enjoyed a calm Tuesday and seem to have remained in a state of holding.
After it is resolved, focus could turn to the Fed & the rate trajectory. Several Fed officials had slightly different views on the direction that they saw the policy taking overnight.
Crude oil Technical Perspective
While the Brent contract is just over US$ 76 barrel, the WTI futures contract is over US$ 72 bbl. There is still a manufacturing output effect from Canadian fires.
After last week’s unexpected increase in oil stock levels. T he weekly US Energy Information Agency (EIA) crude oil numbers will be issued on Wednesday and will be eagerly followed.
When WTI reached a high of 73.58 on Friday. Barrier at 73.93 remained in place, suggesting these levels may do so going forward.
Nearly above these points, both 34- as well as 100-day Simple Moving Average (SMA) may provide resistance. Support could be found at the breaks and previous lows of 69.41, 66.82, 66.12, 64.36, 63.64, & 62.43 on the negative.
