CRUDE OIL hit predicted level, what next? CRUDE OIL recovered from the low 6330-6300 and hit our predicted level of 6520-6580.
The news that Russia announced plans to reduce oil production resulted in a sudden jump in CRUDE OIL prices today. Oil prices jumped 2.45%. Oil jump after Russia announced plans to reduce oil production next month. After the West imposed price caps on the country’s oil and oil products.
Brent Crude Oil futures rose $2.10, or 2.57%, to $86.67 a barrel by 0900 GMT. U.S. West Texas Intermediate (WTI) crude futures were up $2.01, or 2.57%, at $80.07.
Adding to this, the G7 economies, the European Union and Australia agreed to ban the use of Western-supplied maritime insurance, finance and brokering for seaborne Russian oil priced above $60 a barrel from Dec. 5 as part of Western sanctions over Russia’s actions in Ukraine.
Further, the EU also banned purchases of Russian oil products and set price caps from Feb. 5,2023.
The announcement marked a turnaround for bearish sentiment that characterized trade on Thursday and Friday morning against a backdrop of recession fears in the United States and weak demand data from China.
Moreover, all above measures continued giving support to the CRUDE OIL. It’s expected that ongoing jitters will continue to hold recent bullish momentum in the near future.
Technical View
Technically, since 6 February 2023, CRUDE OIL gained almost 8.04%. Morning prices action resulted in formation of long bullish candlestick which is yet creating a probability for upside momentum in near future.
Furthermore, it is expected that CRUDE OIL may test the next resistance 6720 very soon. On the downside, immediate support is seen at 6420-6320.00. And any temporary correction towards 6420-6380 could attract near future buying activities.
Alternatively, a break below 6320 only will show more correction towards 6250-6120 levels again.