Crude oil prices rose to their highest level in more than a week yesterday. Prices rose sharply on heightened hopes for seasonal fuel demand and possible purchases of US crude for its own oil reserves, although a stronger dollar capped gains. of.
Brent crude futures climbed 3.6%, to $81.90 per barrel and U.S. West Texas Intermediate crude futures rose 3.77%, to $77.66. MCX crude oil up 2.58% at 6486.00
Prices climbed over a one-week high, buoyed by expectations of rising fuel demand this summer despite the dollar’s climb on expectations the U.S. Federal Reserve will leave interest rates higher for longer.
The U.S. could hasten the rate of replenishing the Strategic Petroleum Reserve as maintenance on the stockpile is completed by the end of the year, Energy Secretary Jennifer Granholm told Reuters last week. It wants to buy back oil at about $79 a barrel.
The main focus will on U.S. consumer price index data for May and the conclusion of the Fed’s two-day policy meeting on Wednesday for hints on when the Fed may start reducing interest rates.
Adding to this, the market is also watching for reports from the American Petroleum Institute industry group, due later on Tuesday, and the Energy Information Administration, the statistical arm of the U.S. Department of Energy, due on Wednesday.
U.S. crude oil stockpiles were expected to have fallen while product inventories likely rose last week, a preliminary Reuters poll showed on Monday.
Further, monthly oil supply and demand data from the U.S. Energy Information Administration (EIA) and OPEC on Tuesday and the International Energy Agency (IEA) on Wednesday also will weight on the prices.
Technical Outlook – Crude Oil Prices
The Crude oil prices witnessed 2.58% gain. Prices made a high 6493 and settled at 6486, compared to the Friday’s close of 6323.
Since 5 June 2024, prices turned positive and rebounded from the low 6073 and gained over 5%. A Bullish candle stick was found on the chart and MACD turned in to the positive trajectory.
In near future, immediate resistance is seen at 6520 above it 6600.00. On the downside, support is seen at 6380-6300.
Momentum is expected to remain volatile ahead of the crucial data and event.
Happy Trading!
Commodity Samachar
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