On Tuesday, the prices of crude oil surged nearly 4 percent. Moreover, today the market for crude oil prices opened in the red due to showing concerns about supply constraints.
Precisely, the oil prices rose 4 percent soon after Saudi Arabia circulated the clue of OPEC+ about diminishing the output which thereby provided support to oil prices.
The energy minister of Saudi Arabia says that OPEC+ has some ideal means which thereby include cutting the production count to balance the market.
Furthermore, Iran damps down its demand for oil to save the deal, sources said. Fears of recession and rising inflation globally are impacting the demand adversely thereby providing weightage to its prices.
We are very well aware of the market conditions, the Brent crude oil futures prices slipped sharply thereby hitting the year’s high. Furthermore, could not resist the green candle for so long and damps down again. Precisely, indicating a clear view of supply tightness.
Looking into the past week, the crude stocks plunge down by 5.6 million barrels. On the contrary, the distillate stocks rise by nearly 1.1 million barrels.
Technical Analysis of Crude Oil
Crude oil Futures has a support between 7400—7250. Furthermore, the resistance is 7550. If breaks the resistance level of 7550 then we may witness upside targets of 7700—7900.
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