-1702376368.png)
Crude Bouncing
Crude oil prices are rising today and are on course to post their fourth consecutive session in the green. However, the recovery looks tepid and bullish momentum looks weak against the scale of the declines we’ve seen in recent months. Crude futures are down almost 30% from the YTD highs and look vulnerable to further losses from current levels.
OPEC Uncertainty
More recently, the sell-off in oil has been driven by oversupply concerns. Despite OPEC+ announcing that it would extend current production restrictions through to Q1 next year, division within the group and a break from typical procedure (member states will announce their own cut levels instead of adhering to a group-wide quote) has seemingly reduced the impact of the news.
US CPI in Focus
With US production still at highs and concerns over the health of the Chinese economy taking centre stage, near-term demand prospects look shaky. Looking ahead this week, crude traders will also be watching USD on the back of tomorrow’s CPI reading. Further downside should help crude recover further, weighing on the Dollar. However, any fresh upside should see a fresh downturn in crude with USD likely to trade higher through the week.
Technical Views
Crude
The sell off in crude has seen the market breaking down below the 72.61 level. While below here and with momentum studies bearish, the focus is on a continuation lower and a test of 66.79 next. To the topside, bulls need to see a break of the channel highs in order to alleviate downside focus.
.png)
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Futures and Options: Trading futures and options on margin carries a high degree of risk and may result in losses exceeding your initial investment. These products are not suitable for all investors. Ensure you fully understand the risks and take appropriate care to manage your risk.
With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.