Crude oil up o Buying US SPR and resist China reports. Tuesday saw a little increase in the price of crude oil following significant increases in the North American period.
Crude oil Salient Points
With the support of reserve purchasing, crude oil has made a return this week.
Concerns about China’s economic health are growing as its statistics remain to be disappointing.
The US debt ceiling is in the news a lot right now.
Crude Oil gains a momentum of SPR buying
Tuesday saw a minor increase in the price of crude oil following significant gains in the North American period. As a result of the news that 3 million barrels would be purchased to replace the (SPR) depleting inventories.
While the Brent contract is barely above US$ 75.50 per barrel, the WTI futures contract is close to that price.
Despite lackluster Chinese data showing that the Covid-19 limitations have been lifted. The government and the market had hoped for economic growth. The rise was not significantly hindered.
Property investment and fixed asset investment excluding rural areas both fell short of expectations. Reading at 4.7% and -6.2%, accordingly. Given the economy remaining under Covid-19 tight limitations at the same time last year., This had a high base impact throughout the statistics.
Three Fed speakers offered three distinct viewpoints at the North American meeting. Austan Goolsbee, the president of the Chicago Fed. Adopted a significantly dovish tone when he indicated that he didn’t like the Fed’s most recent rate rise.
The Technical Perspective (WTI
The breaking point of 73.93, located slightly above the most recent top at 73.89, may provide resistance. Close to these marks is the 21-day Simple Moving Average (SMA). Which might provide a barrier. The 34- and 100-day SMAs, which are now close to 76.35, may present resistance moving upward. Support could be found beneath at the preceding lowest points of 63.64 and 62.43.
Crude Oil Estimations Based on Prevailing Fundamental Conditions
Oil Price Forecast for May 17 – 22
On Monday, May 15, the price of oil is expected to be 72.82 dollars, with an estimated range of 76.46 to 69.18. Tuesday, May 16 Brent oil price prediction: 71.72 dollars, high 75.31 dollars, low 68.13 dollars. Wednesday, May 17 oil price prediction: 71.13 USD, max 74.69 USD, low 67.57 USD. Estimate for the price of Brent oil for May 18: 71.74 USD, peak 75.33 USD, the least 68.15 USD. Estimate for the price of oil for May 19: 73.04 USD, with a price range of 76.69 to 69.39 USD.
May 17, the oil price forecast is expected to be 72.53 dollars, with a range of 76.16 to 68.90 USD. WTI oil price prediction for May 18th: 71.18 USD, highest 74.74 USD, lowest 67.62 USD. Friday, May 19 oil price projection: 69.84 Dollars, max 73.33, lowest 66.35. Monday, May 22: 69.14 Dollars, highest 72.60 Dollars, lowest 65.68 Dollars; WTI oil price prediction.
Disclaimer
This projection relies on reports from market intelligence, information, and news sources. economic signaling. prevailing circumstances. Thorough technical & fundamental examination. and might alter at any time without warning. The use of this estimate may cause losses for which the firm is not liable.
