Crude oil costs have been very risky at present with the worth first shifting increased to a excessive of $67.58, then shifting decrease to a low at $65.63 earlier than rotating again to the upside and making new excessive value as much as $67.97. The excessive value at present bought inside $0.16 of the falling 100 hour shifting common (blue line at the moment at $68.13).
Word on Tuesday, the excessive value bought inside an identical distance on two separate events solely to search out keen sellers in opposition to that shifting common degree. It would take a transfer above the 100-hour shifting common to extend the bullish bias from a technical perspective a minimum of within the quick time period.
The final time the worth traded above its 100-hour shifting common was again on August 30.
Regardless of a smaller-than-expected stock construct and the rebound, oil costs stay close to their lowest level since Might 2023 attributable to considerations over weakening demand, notably in China. OPEC’s choice to decrease its demand development forecast and slowing crude oil imports from China contributed to the decline.
The EIA has lowered its oil value projections for This fall and 2025, and the specter of Hurricane Francine within the Gulf of Mexico poses a threat to refinery operations.