Crude oil prices increase due to remarks made by the Saudi oil minister and a decrease in US crude oil stockpile.
Crude oil Important Considerations
Short-sellers have been cautioned to “keep an eye out” by Saudi Arabia’s oil minister, Prince Abdulaziz bin Salman, as the price of oil rises.
Data on inventories reveal a sharp decline in the previous week, showing increased demand before to the US travelling season.
On the 4-hour graph a bullish triangle formation develops, adding to the evidence that the downward trend may be changing.
The soon-to-be-released EIA inventory report may offer volatility.
The OPEC+ upcoming meeting is critical
The price of oil is trading a bit higher on Wednesday as a result of US statistics showing a sharp decline in oil stocks. Which suggests increased demand. The Saudi Oil Minister’s “keep an eye ” caution to oil short-sellers prior to the OPEC+ meeting of June 4. Helped to boost the price of oil even more.
WTI oil is currently trading at approximately $74 while Brent crude is trading in the high $77s. On the 4-hour graph, A bull right-angled triangle emerged, challenging the general bear pattern.
Market movers and news about oil market
After the American Petroleum Institute (API) released weekly inventory data showing a 6.7million barrel decrease in stockpiles, signaling strong demand, the price of oil increased.
The API report was expected to indicate a 525,000 barresl increase in inventory, according to analysts.
Prince Abdulaziz bin Salman, the Saudi oil minister, cautioned oil speculators to “keep an eye out” As they may meet the same fate that they did “on April.”
His remarks were seen as an alert to sellers who are short that the price of oil would increase.
At the summit in October 2022, Abdulaziz supported OPEC and its choice to reduce output by two million barrels a day. Given that the price of oil is comparable to levels from October. There may be a chance that the cartel may make an announcement.
Because US macroeconomic indicators remain supportive and (Fed) officials continuing to discuss the likelihood of more rate rises. The price of oil has momentarily detached off the US dollar, which is gaining momentum.
Oil, being is priced in USD, might see an upsurge if additional rate rises are discussed.
Crude oil stockpiles will be officially estimated by EIA inventory data that will be made public at 14:30 GMT. If the report confirms the API decline, it might give crude prices another boost.
The technical analysis of crude oil: Positive triangle in downward
Technically, WTI Oil has been hitting lower levels over an extended period of time, indicating a downtrend. This promotes short holdings over long ones. Except for the 200-week SMA, which is trading at $66.89, WTI Oil is trading under all of the significant (SMA) and all of the weekly SMAs.
The downtrend must fall beneath the year-to-date (YTD) levels of $64.31 in order to resume. The subsequent goal would – be around $62.00. where the 2021 trough lows are going to come into play, and support would come in near $57.50.
Despite the dominant negative trend, there are more and more ishows of a potential ending and turnaround. A hint that the downward pressure is fading is the slight positive close among price.
This would take a clear breach under the lower boundary. With a target price of $67.27. It sits just above the 200-week SMA, which is expected to provide support. For additional confirmation, investors would even want to watch for a correction under the $69.40 of bottom wave B.
