FXTM information and reviews
FXTM
93%
OctaFX information and reviews
OctaFX
92%
XM information and reviews
XM
91%
FXCC information and reviews
FXCC
90%
Libertex information and reviews
Libertex
89%
FxPro information and reviews
FxPro
88%

Crude Oil Updates the Highs


31 May 2022

This week is starting with new highs in Brent – the asset has reached the highs of 9 March 2022 and updated $120. There are several factors that support oil bulls – they are pretty clear but market players are still building on them. Increasing car traffic in the US due to the start of a travel season make the demand for fuel go up even when retail prices for energy are high. At the same time, the supply shortage in the domestic market didn’t go anywhere and it’s another thing that keeps prices “in suspense”.

In addition, investors aren’t forgetting about a possible oil embargo against Russian oil by the European Union. The suspense is getting more intense, and investors will remain nervous as long as it’s here.

The latest report from Baker Hughes confirmed that the shale industry remained rather inactive, although the volumes were slowly increasing. Over the past week, the Oil Rig Count in the US decreased by 2 units, down to 574. In Canada, the indicator increased by 15 units, up to 55.

Technical analysis – Brent oil

In the H4 chart, after forming a new consolidation range around 117.00 and breaking to the upside, Brent is expected to expand it up to 119.30 and may later fall to test 117.30 from above. After that, the instrument may resume moving within the uptrend with the target at 123.00 or even extend this structure up to 128.88. From the technical point of view, this scenario is confirmed by MACD Oscillator: its signal line is growing above 0 within the histogram area, which means that the uptrend in the price chart may continue.

Brent H4 chart

As we can see in the H1 chart, having rebounded from 117.10, Brent is growing to break 119.30. and may later continue trading upwards with the target at 123.00. From the technical point of view, this idea is confirmed by the Stochastic Oscillator: its signal line is moving below 80 and may later continue moving downwards to rebound from 50. After that, the line is expected to resume growing and reach 80.

Brent H1 chart

RoboForex Analytical Department
#source

Share:


Related

Stocks drift, dollar firms as markets brace for US jobs slowdown
Stocks drift, dollar firms as markets brace for US jobs slowdown

Recession jitters were abound on Friday even as markets got off to a steady start following a few wobbles along the week. PMI indicators around the world painted a grim picture for services activity, suggesting major economies...

5 Aug 2022

Wall Street bounces, shrugs off Taiwan tensions and hawkish Fed
Wall Street bounces, shrugs off Taiwan tensions and hawkish Fed

Geopolitical tensions and recession fears appear to have faded into the background for investors as shares on Wall Street staged another impressive rally on Wednesday...

4 Aug 2022

Fed hawks lift yields out of the doldrums, yen pauses for breath
Fed hawks lift yields out of the doldrums, yen pauses for breath

Bond markets were reeling and interest rate futures were being recalibrated after Federal Reserve officials questioned the recent scaling back of rate hike expectations by investors...

3 Aug 2022

US-China tensions dent appetite as yields crumble, dollar creeps higher
US-China tensions dent appetite as yields crumble, dollar creeps higher

Risk sentiment took a knock on Tuesday as it emerged that the Speaker of the US House of Representatives Nancy Pelosi is on her way to Taiwan, defying China’s strong advice against...

2 Aug 2022

Crude Oil Is Afraid of Geopolitics
Crude Oil Is Afraid of Geopolitics

The commodity sector remains rather tense on Monday; Brent is trading at $102.75. Global geopolitics is what investors are focused on right now. Any complications in this area muddy the water...

1 Aug 2022

Dollar slips further as easing rate hike bets bolster stocks
Dollar slips further as easing rate hike bets bolster stocks

The US dollar has started August on the backfoot as markets are increasingly convinced that the Federal Reserve’s rate hike days are numbered, while Wall Street has just notched up its best month since November 2020...

1 Aug 2022


Forex Forecasts

HFM information and reviews
HFM
87%
IronFX information and reviews
IronFX
86%
FXCM information and reviews
FXCM
85%
Pepperstone information and reviews
Pepperstone
84%
NordFX information and reviews
NordFX
83%
LegacyFX information and reviews
LegacyFX
82%

© 2006-2022 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.