Oil prices surged nearly 3% on Wednesday, recovering from the previous day's losses, driven by a significant decrease in U.S. crude stockpiles. However, concerns about interest rates and central banks' fight against inflation limited the rally. WTI rose 2.8% to $69.62 per barrel. This marked the first significant gain in oil prices in a week. The Energy Information Administration reported a substantial 9.603-million-barrel drawdown in U.S. crude inventories, the largest weekly decline since May. Gasoline inventories built up slightly, while distillate stockpiles saw a modest increase.
Oil is facing uncertainty from Saudi Arabia implements production cuts as well, while central banks prepare to raise interest rates. The outcome is difficult to predict as economic growth continues in the West despite concerns of a recession. If Saudi Arabia's efforts fail, they may flood the market with supply. The correlation between oil demand, economic growth, and rising interest rates adds complexity to the situation. Lower oil prices and potential market fluctuations are expected. Overall, the interplay between various factors makes it challenging to make accurate predictions about oil prices.
On the technical site, RSI remains neutral, while MACD index continues to show sell signals.
The instrument might reach levels of 68.45 from which it might pivot to bearish territory, otherwise it might face resistance at 69.40 and 71.10 price levels.
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Oil is facing uncertainty from Saudi Arabia implements production cuts as well, while central banks prepare to raise interest rates. The outcome is difficult to predict as economic growth continues in the West despite concerns of a recession. If Saudi Arabia's efforts fail, they may flood the market with supply. The correlation between oil demand, economic growth, and rising interest rates adds complexity to the situation. Lower oil prices and potential market fluctuations are expected. Overall, the interplay between various factors makes it challenging to make accurate predictions about oil prices.
On the technical site, RSI remains neutral, while MACD index continues to show sell signals.
The instrument might reach levels of 68.45 from which it might pivot to bearish territory, otherwise it might face resistance at 69.40 and 71.10 price levels.
Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carries a high level of risk. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and on such sites. Furthermore, one understands that the company carries zero influence over transactions, markets, and trading signals, therefore, cannot be held liable nor guarantee any profits or losses.