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Crude Caught Between Opposing Drivers
Oil prices are looking a little more stable today on the back of two days of heavy selling. An uptick in USD alongside fresh fears over the health of the Chinese economy have combined to weigh on sentiment with crude futures correcting around 4% lower from recent highs.
Crude prices were seen breaking out last week as a fresh fall in US inflation saw the market scaling back its Fed rate-hike expectations. Along with fresh production cuts from Saudi Arabia and Russia, the medium term- picture has turned more positive for crude prices on the one hand. However, concerns over the health of the Chinese economy are having an offsetting impact and limiting the current gains.
US Data on Watch
Looking ahead today, US retail sales will be on watch and hold the potential to drive oil prices via a shift in USD flows. If USD is seen moving lower on the back of today’s data this should fuel some fresh upside in oil prices, with focus then turning to tomorrow’s EIA inventories release.
Technical Views
Crude Oil
The rally in crude oil has seen the market breaking out above the 72.61 level and above the bear channel highs. While price remains above this region the focus remains geared towards higher prices with 82.59 the next upside level to note. To the downside, any move back below 72.61 will turn focus to 65.34 as the next support.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.