New trading week has started on a positive note as stock indexes both in the United States and over the pond have posted positive results on Monday. Dow Jones and S&P 500 have added 0.76% and 0.23% respectively while Euro Stoxx 50 gained 0.46%. These gains were largely due to an upside movement in the oil market and lack of market moving data.
Crude prices rose on fears of further output reduction in the United States after damage made to oil facilities by Ida hurricane. More than 75% of U.S. offshore crude production is located in the Gulf of Mexico or 1.4 million barrels per day that is currently suspended. Another factor of support for the crude prices comes from approaching new hurricane to the Gulf and protests in Libya that blocked oil exports from this country. Crude reserves data in the United States that is expected to be published today may also affect crude prices.
Nevertheless, technical picture from Brent crude prices is seen more bullish is prices remain above $73.1-73.3 per barrel after breaking through a downward trend that was active from July 6.
Potential targets for Brent crude prices are located at $76-76.20 per barrel is measured by September 1-9 consolidation span. Long-term targets are located at $82 per barrel highlighted by the downward range where prices were located in July-September.
All that means the global stock indexes may continue to be on the positive tunes. However, caution is needed as annual inflation in the United States is still at the high level of 5.3% despite it has slowed down in August from 5.4% in June and July. Since March 2021, consensus forecast turned to be lower than the actual data that was revised afterwards. Traders should also pay attention to the today.
Crude prices rose on fears of further output reduction in the United States after damage made to oil facilities by Ida hurricane. More than 75% of U.S. offshore crude production is located in the Gulf of Mexico or 1.4 million barrels per day that is currently suspended. Another factor of support for the crude prices comes from approaching new hurricane to the Gulf and protests in Libya that blocked oil exports from this country. Crude reserves data in the United States that is expected to be published today may also affect crude prices.
Nevertheless, technical picture from Brent crude prices is seen more bullish is prices remain above $73.1-73.3 per barrel after breaking through a downward trend that was active from July 6.
Potential targets for Brent crude prices are located at $76-76.20 per barrel is measured by September 1-9 consolidation span. Long-term targets are located at $82 per barrel highlighted by the downward range where prices were located in July-September.
All that means the global stock indexes may continue to be on the positive tunes. However, caution is needed as annual inflation in the United States is still at the high level of 5.3% despite it has slowed down in August from 5.4% in June and July. Since March 2021, consensus forecast turned to be lower than the actual data that was revised afterwards. Traders should also pay attention to the today.
