Oil Prices Cross Important Level After Uae Comments

Oil Prices Cross Important Level After Uae Comments by Andrew Blumer last updated on October 19, 2023

Oil Prices Cross $90 Level After UAE Comments

After a steady decline during Thursday & Friday, the oil prices have started to recover once again. Earlier, the crude oil had crossed the $94 level only to experience a quick selling wave that pushed it 4.5% lower.

One of the key indicators that could be pinned to the recent decline in oil is the energy conference that's scheduled to happen. At the event, all the major players from the oil industry and energy ministers will be coming, which tells us that it will have a major effect on oil prices.

The US Dollar Remains Supported

Looking at the US Dollar side, it appears that the greenback struggled a little bit to close the week in green. But despite all of this, we can't deny that the USD has closed its 11th week on a positive note. In addition, the government shutdown issue is solved, and the budget's date is now November 2023.

However, it also tells us that the US representatives have only delayed the problem by a few weeks at best. According to experts, the US government will need to take action again as it will run out of money during mid-November.

For now, the Brent oil is trading near $92.45 while the WTI is exchanging hands near $90.30. The events lined up for the week will play a key role in how the price action plays out for the oil.

Technical analysis of oil prices shows that the $93.12 is an important resistance, which is also the neckline of a double top. During Thursday's session, the level was breached briefly, but the sellers quickly pushed down the oil once again.

In a sense, we can say that the $93.12 still remains an important resistance. So if the oil pushes past this level, the next levels to watch will be $97.11 and then $100.

In the event of a breach of the $90 support, the new support zone for the oil prices will be $88 and then $84.20.