Market Analytics and Considerations
Key Notes
Despite the uncertainty surrounding it, crude oil has been sustained.
Today, crude oil maintained overnight gains as market repercussions from the Bank of Japan’s surprise move yesterday persisted.
3.1 million barrels were removed from US crude stockpiles the other week, according to statistics from the American Petroleum Institute (API).
This was significantly less than the predicted modest dip. Now that the situation is clearer, oil traders will turn to today’s Energy Information Administration (EIA) stockpile data.
Yesterday, OPEC added its voice, stating that it would continue to take preventative and preventive measures.
The restoration of the Keystone pipeline has also been subject to additional delays. The connection connects the US Gulf Coast to the Canadian oil fields.
At the time of writing, the Brent contract is close to US$ 80 bbl and the WTI futures contract is just above US$ 76 barrel.
As a significant energy consumer, Japan may be better able to secure supplies as the winter months approach thanks to this week’s rise in the value of the Yen.
Today’s price activity throughout many markets has been rather calm compared to yesterday’s tumult in the Asian session. The Bank of Japan’s judgement has repercussions that have yet to be completely absorbed.
The technical analysis of WTI crude oil
WTI crude oil has recovered out of its early this month observed 12-month bottom of 70.08, and that area may function as support before the 66.12 dip of December 2021.
The 21-day simple moving average (SMA) has recently served as resistance for the price, and it might again do so before attaining the new high of 77.77. This level might provide opposition.
Resistance farther higher could be found at the 82.63 threshold or the most recent tops of 82.72 to 83.34. The 55-day SMA is presently close to that top of 83.34 as well.
