Oct 18, 2022
VOT Research Desk
Market Analytics and Considerations
A dampened U.S. dollar and supply woes helped oil prices rise on Tuesday, but gains were capped by the possibility of lower fuel demand from China as it maintains its stringent zero-COVID policy.
By 0643 GMT, Brent crude futures were up 82 cents, or 0.9%, to $92.44 per barrel, while WTI crude futures were up 86 cents, or 1.0%, to $86.32 per barrel.
The greenback’s value against six major peers, including sterling, is measured by the U.S. dollar index, which fell to its lowest level since Oct. 6.Oil becomes more affordable for buyers holding other currencies when the dollar weakens, encouraging them to make purchases.ANZ
Investors have been seen increasing their long positions in futures following the drastic reduction in production that was agreed upon earlier this month by OPEC+—the Organization of the Production Exporting Countries (OPEC) and its allies, including Russia.
After the White House accused Riyadh of coercing other nations into supporting the move, OPEC+ member states have been lining up to support the cut to the output target.
Meanwhile, some support for oil prices was provided by expectations that China will maintain a loose monetary policy to assist its economy, which is constrained by COVID-19 restrictions. On Monday, the nation’s central bank kept its key interest rate the same for a second month while rolling over maturing medium-term policy loans.
CMC Markets analyst Tina Teng stated that China’s economic indicators, which were originally scheduled to be released on Tuesday, impacted sentiment, weighing on the outlook for fuel demand.
A new release date has not been announced.
Teng stated that China’s adherence to its zero-COVID policy has continued to increase economic growth uncertainty.
According to a preliminary Reuters poll released on Monday, U.S. crude oil stocks were anticipated to have increased by 1.6 million barrels in the week ending Oct. 14 for the second week in a row.
According to the Energy Information Administration, production in the largest shale oil basin in the United States, the Permian Basin, which consists of Texas and New Mexico, is anticipated to rise by approximately 50,000 barrels per day (bpd) to a record 5.453 million bpd this month.
Technical & Indicators (Daily)
PIVOTS
|
Name |
S3 |
S2 |
S1 |
Pivot Points |
R1 |
R2 |
R3 |
|
Classic |
81.83 |
83.22 |
84.34 |
85.73 |
8.85 |
88.24 |
89.36 |
|
Fibonacci |
83.22 |
84.18 |
84.77 |
85.73 |
86.69 |
87.28 |
88.24 |
|
Camarilla |
84.77 |
85.00 |
85.23 |
85.73 |
85.69 |
85.92 |
86.15 |
|
Woodie’s |
81.69 |
83.15 |
84.20 |
85.66 |
86.71 |
88.17 |
89.22 |
|
DeMark’s |
– |
– |
83.78 |
85.45 |
86.29 |
– |
– |
Technical Parameters
|
Name |
Value |
Action |
|
RSI(14) |
45.750 |
Neutral |
|
STOCH(9,6) |
30.652 |
Sell |
|
STOCHRSI(14) |
27.844 |
Sell |
|
MACD(12,26) |
-0.170 |
Sell |
|
ADX(14) |
20.348 |
Sell |
|
Williams %R |
-64.966 |
Sell |
|
CCI(14) |
-59.1116 |
Sell |
|
ATR(14) |
3.3614 |
Less Volatility |
|
Highs/Lows(14) |
-0.9179 |
Sell |
|
Ultimate Oscillator |
45.066 |
Sell |
|
ROC |
3.681 |
Buy |
|
Bull/Bear Power(13) |
-3.1420 |
Sell |
|
Buy: 1 Sell: 9 Neutral: 1 Summary: STRONG SELL |
||
Moving Averages
|
Period |
Simple |
Exponential |
|
MA5 |
85.92 |
85.90 |
|
MA10 |
87.84 |
85.85 |
|
MA20 |
84.83 |
86.12 |
|
MA50 |
87.06 |
88.57 |
|
MA100 |
95.33 |
92.07 |
|
MA200 |
98.77 |
92.64 |
|
Buy: 0 Sell: 12 Summary: STRONG SELL |
||
