Jump to content

Crude Oil Prices May Pull Back But Supply Gaps Are Still in Play


MongiIG

Recommended Posts

CRUDE OIL OUTLOOK:

  • Crude oil prices mostly ignoring Fed-themed macro, supply/demand gaps in focus
  • Pullback possible amid risk-off trade but lasting bearish progress may be difficult
  • Breaking key resistance below $93/bbl might expose the coveted $100/bbl figure
Crude Oil Prices May Pull Back But Supply Gaps Are Still in Play

Crude oil prices have seemingly paid little heed to macro forces recently. Instead, the focus has been on a supply/demand imbalance that saw global output fall short of consumption by an average of 1.4 million barrels per day last year. That has brought cumulative international inventories to the lowest in seven years.

The WTI benchmark had another spirited intraday rally arrested Friday as blowout US jobs data stoked Fed rate hike speculation and drove up the US Dollar, but a downward reversal was tellingly absent. Prices are denominated in USD terms on world markets, so the currency’s rise applies de-facto pressure.

Looking ahead, a bit of re-engagement with broader sentiment trends in the absence of anything notable on the economic calendar seems to be afoot. WTI is edging lower alongside bellwether S&P 500 futures, suggesting that a risk-off tilt may translate into a pullback. The case for follow-through seems suspect for now however.

 

CRUDE OIL TECHNICAL ANALYSIS

Prices are testing resistance capped at 92.72, a barrier dating back 8 years. Breaking above it on a daily closing basis looks likely to set the stage for a test of the coveted $100/bbl figure. Initial support is anchored at 84.65, with sellers probably eyeing the swing bottom at 81.90 thereafter.

Crude Oil Prices May Pull Back But Supply Gaps Are Still in Play

Crude oil price chart created using TradingView

CRUDE OIL TRADING RESOURCES

Written by Ilya Spivak, Head Strategist, APAC for DailyFX. 7th Feb 2022

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • Web3 wallets have reinstated asset control to crypto enthusiasts, causing a paradigm shift from the regular central authority exerted by traditional exchanges. Web3 Wallets like Bitget Wallet has taken a step further to raise the security standard, ease of use, and overall user experience. Following the swift expansion and adoption of Bitget Wallet ecosystem, and in the spirit of celebrating its 6th year anniversary,  the team has launched an exclusive Merch giveaway. This opportunity opens up as one of the exciting opportunities available on the Wallet, and only requires simple task participation to be eligible: • Follow the official Bitget Wallet X account @BitgetWallet • RT + comment #BitgetWallet6Years • Give insightful feedback about Bitget Wallet and stand a chance to win Bitget exclusive merch like T-shirt, Cap, Hoodie and Wristband • Fill in the form: https://docs.google.com/forms/d/e/1FAIpQLSd2vHpF8sg-f4putq-suYxSRpGVhxce3EXHKZy3D1Kf0ejRDQ/viewform?usp=send_form This event lasts from May 18th 16:00 – May 21st 18:00 (UTC +8) Guys be sure not to be left out!
    • I have traded £/$ option for a few years but wondered if anyone can tell me why IG option prices fed from UBS Bank have drastically departed from the Black Scholes Pricing model recently, which it used to conform with? Whilst this is an OTC mkt IG have informed me in the past that they "follow" BSM pricing, which they used to do by and large but now:. Example: £/$ Sept 13100's: Call Option mid: 31. Put Option 510. BSM pricing model price on £/$ Sept 13100's:  Call Option 71  Put Option 343. Thanks.
×
×
  • Create New...
us