Oil Turns Green On Friday

last updated on

Oil Turns Green On Friday

Oil Turns Green On Friday But Down By 5% For The Week

Friday's session allowed the oil prices to recover some of the lost ground. According to analysis, this is mainly due to the traders buying the dip after the recent bearish trend.

In other news, Saudi Arabia has mentioned that the supply cuts will continue even in the year 2024. However, it appears that the markets are not buying these comments, as the oil prices are still down by 5% for the week.

Oil Production Increased In The USA

To say that supply & demand are going through a reshuffle wouldn't be totally wrong at all. In the USA, a significant increase was seen in oil production, which actually led to a surplus in the demand side.

It appears as if the US Dollar has also formed some sort of correlation with crude oil as it also declined during the same period of time. In this regard, the traders believe that despite the hawkish comments by the Fed, the central bank is done with the rate hikes.

In addition, some traders are also worried about the prospects of a recession starting in the year 2024. In that case, the US economy would be dealt a major blow & will likely affect the US markets as well.

So, if we keep this in context, there's a higher chance of more USD depreciation against other currency pairs starting from next year.

For now, the WTI trading price is $74.03, while the Brent Oil trades near $78.52 with a short-term upside. According to some analysts, the recent price action in crude oil is a sign that more volatility is just around the corner.

Looking forward, the most prominent resistance is the $80.00, followed by the $84 and then $90. At these levels, there's a higher chance of strong selling or profit-taking as the traders exit the market.

On the other side, we have the support at $74, followed by $70, which is also a round number. If the oil prices touch $70 or lower, the chances of OPEC+ intervention will increase significantly.

Trending Stories