Development considerations have lastly pulled crude oil costs beneath a key development line help.
Will this imply extra losses for the commodity?
Right here’s the 4-hour chart that I’m taking a look at at present:
As you may see, crude oil costs have taken a downturn since final week after the Fed raised its interest rates by a sharper-than-expected 75 basis points.
The Fed’s transfer and tightening efforts of different central banks have introduced world slowdown considerations underneath the markets’ highlight.
Brent crude oil is now buying and selling nearer to $109.00, which is already waaay beneath a trend line support that had been holding since mid-April.
Each the 100 and 200 SMAs have additionally turned decrease on the 4-hour time and are supporting a attainable development change.
Will we see extra losses for the Black Crack?
Phrase round is that U.S. President Biden will urge Congress to droop the fuel tax over the summer time months. Biden can be set to satisfy with U.S. oil refiners this week to ask them to provide extra gasoline and diesel.
Seems just like the POTUS is engaged on the provision facet of crude oil’s provide and demand!
In the meantime, Powell’s testimony earlier than the Senate Banking Committee later at present ought to remind merchants that the Fed isn’t completed elevating charges simply but.
If we see extra updates on the U.S. authorities’s efforts to convey down oil costs, or if merchants deal with Powell’s testimony at present, then Brent crude oil may lengthen its losses.
Brent crude may drop all the way in which to the $105.00 – $106.00 zone relying on the momentum we see within the subsequent trading sessions.
If Biden will get sufficient pushback, nonetheless, or if Powell calms markets with talks of an finish in sight for the Fed’s tightening plans, then threat belongings may decide up and push Brent crude again above the 4-hour development line.
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