![Crude Oil Update | Oil retreats amid tight supply & high rate fear](https://commoditysamachar.com/wp-content/uploads/2023/09/BLOG-87-2-1024x576.jpg)
Crude Oil prices retreated nearly one percent since morning today as per the latest crude oil update. As an abrupt bullish move U.S. dollar amid major central banks holding interest rates higher for longer intensified concerns that demand for fuel will be detained, even with supply expected to be tight.
The dollar rose to a new 10-month peak on Tuesday as U.S. bond yields surged to their highest level since October 2007, while the Japanese yen resumed its slide, putting traders on alert for signs of government intervention.
The world’s top economic policymakers, the U.S. Federal Reserve and the European Central Bank, have over recent days reiterated their commitment to fight inflation, signaling tight policy may persist longer than previously anticipated. Higher interest rates slow economic growth, which curbs oil demand.
Separately on Monday, rating agency Moody’s (NYSE:MCO) said that a U.S. government shutdown would harm the country’s credit, a warning coming one month after Fitch downgraded the U.S. by one notch on the back of a debt ceiling crisis.
China’s property woes have also weighed on sentiment, CMC’s Teng added, with China Evergrande (HK:3333)’s announcement on Monday evening that it had missed a bond coupon payment driving renewed investor pessimism on the sector, which had long been a major economic growth driver.
While supply remains tight as Russia and Saudi Arabia have extended production cuts to the end of the year, Moscow on Monday eased its temporary ban on gasoline and diesel exports, issued separately to stabilize the domestic market as per the crude oil update.
Crude Oil Update | Technical Outlook:
![The chart displays the crude oil update for the current trading session.](https://commoditysamachar.com/wp-content/uploads/2023/09/CRUDEOIL1_2023-09-26_14-35-22.png)
Crude oil prices paused its bullish rally that started from the low 6425 of 24 August 2023. Prices touched its multiple month high 7796 on 19 September 2023. Since then, prices struggled to cross it and retreated almost 1.80%. Today, it traded at 7392, down 1.03%.
On the above chart, a cluster of high wave candlestick is indicating indecision in between buyer and seller. As prices struggle amid jitters of tight supply concern Vs strong dollar index impact.
However, prices trading near to its short-term consolidation support 7350 and a break below may put pressure. It could test the next support 7250-7180 very soon.
Alternatively, prices expect to consolidate in between the range of 7355-7580 on a closing basis in near future.Â
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