Instrument: OILs
Technical Analysis
Bullish Preference:
Buy position is envisaged if price trades above 73.26 with take profit at 73.55.
Bearish Preference:
Sell position is envisaged if price trades below 72.47 with take profit at 72.24.
Fundamentals:
None with high impact.
Comment: Official US crude inventories followed the API data from the day before and posted a surprise increase in stocks. However, instead of prices falling, oil rallied aggressively. Brent crude leapt 5.25% to USD 72.225 a barrel, and WTI rocketed 5.80% higher to USD 70.25 a barrel. Unless we get another massive wave of Delta-variant risk-off sentiment sweeping markets, the lows seen by oil this week are likely to be the lows seen for some time. The world remains on a recovery track, albeit asymmetrically, supporting oil’s consumption fundamentals for the rest of 2022.
Analysis: SCRUM Team