Crude oil inventory will be in focus, after an earthquake in Turkey.
CRUDE OIL witnessed a speculative jump of 3.78% yesterday and settled at 6363 as compared to previous day’s close of 6131. Crude oil hit a day’s high of 6383, as the dollar fell after Federal Reserve Chair Jerome Powell sounded less hawkish on interest rates than markets had expected and as U.S. crude stocks surprisingly fell. Meanwhile, The outage of an oil export terminal after the earthquake in Turkey also supported recent gains.
Supply disruptions caused by a major earthquake in Turkey saw oil prices increase sharply this week. Recent media reports suggested that an Iraqi pipeline to Turkey’s Ceyhan oil export hub had resumed flows.
Adding to this, Crude prices have carry-over support from Monday when Saudi Aramco unexpectedly increased the price of its Arab Light grade crude shipped to Asian customers in March by 20 cents a barrel versus an expected cut of 20 cents. That was the first price increase for that crude grade since September.
The Greenback which retreated 0.28% yesterday also weighed on recent sentiment. Adding to this, optimism about stronger Chinese energy demand was supportive for crude after Saudi Aramco on Monday unexpectedly raised its crude prices for Asian customers.
Today, the Energy Information Administration will publish weekly inventory data at 9pm. The data closely have to be watched. Data foreseen at 2.0M slightly lower from previous 4.1M; this might have a positive impact on CRUDE OIL prices.
U.S. crude inventories expanded over the last six weeks, raising some concerns over demand in the world’s largest oil consumer, as it grapples with relatively high inflation and rising interest rates.
Technical
Since 6 February 2023, CRUDE OIL turned positive and gained almost 4.50%. Formation of long bullish candlestick on daily chart is creating a probability for upside momentum in near future. However, CRUDE OIL Future would need to break above its immediate resistance 6432 in order to test next resistance 6520-6580.
Else, CRUDE OIL Future expects to show pullback from the immediate support 6330-6300 levels.
On the downside, crucial support is seen at 6175-6050.00
Sentiment expects to remain volatile and a big move could be expected in CRUDE OIL Future later today. Fundamentals will decide the near future trend for the oil prices in days to come.