Crude Oil projections: Oil Economics Will Maintain The costs. As the 200-day MA creeps into sight, a crucial turning point gets challenged.
CRUDE OIL FRAMEWORK
The price of WTI crude has had a fairly good week prior to the Fed’s rate decision the following week. Which might signal the end of an interest-rate cycle. Investors are factoring in a 25bps raise with near surety. However, future projections by the Fed will prove critical for near-term heading.
In terms of crude oil, Baker Hughes rig counts fell even more, reducing supplier perspective. worries and adding to crude oil gains. Oil stockpile shift figures from each the API & the EIA failed predictions nonetheless showed negative. Which combined with hope about the Chinese economy as a consequence of more stimuli led in significant price gain for crude oil. Given the reality that the US dollar is increasing a historically unfavorable association via crude. A number of crude-specific variables have offset this adverse situation.
Crude Oil Investors Focused on OPEC, China and US Inflation Reports
The cost has also been bolstered by record Russian oil purchases by India and China. However, experts believe that purchasing demand from India may wane, which would somewhat negate current signs of strength and restrict oil’s rises.
During the OPEC Global Seminar, OPEC+ Ministries pointed out its flexibility and adaptability. Emphasizing that they’re continually watching trends in the market and are ready to take any steps needed to support the market for oil.
Aside than the FOMC the release, the week forward is packed with significant impact economic reports. Including an emphasis on the Fed’s preferred gauge of inflation (PCE price index), which could coincide with earlier CPI report. Suggesting decreasing price pressures on the US economy. If this occurs, a lower US currency may provide a further lift to crude oil pricing.
Positive Factors
Price increases due to a tight equilibrium
Revival of Chinese demand
The worldwide market is increasing.
Oil is being boosted by economic confidence.
Supply concerns exist as investors hope for a worldwide cyclic upturn.
Russia’s fresh oil embargo & China’s resumption
Technical Outlook
The daily graphs’s technical backdrop is bullish in general. Since upward momentum is robust and the daily Tenkan-sen / Kijun-sen indicators have a bullish setup. Yet immediate activity has been frequently stopped by a sliding 200DMA. This strengthens the band limit & holds bull traders in restraint.
Short-term activity is projected to stay skewed upward while remaining over the rising 10DMA ($75.34) mark. With the possibility of a pause remaining for as long as the 200DMA is higher.
Price activity moving between the convergent 10DMA with 200DMA might likely remain flat for a longer period of time. Whereas a sign of weakness will be formed if the 10DMA confluence is broken.
Major Technical Levels
Resistance levels:
- $80.00
- Channel resistance
- $77.30
- 200-day MA
Support levels:
- $75.00
- $72.50
