Middle East Force Will Bring More Oil Market Speculators
PrimeXBT will now be offering a technical and fundamental analysis overview of USD/BRO.
Fundamental Analysis and News:
Oil had its wildest day since the Saudi Arabia attacks last year. After spiking aggressively as news of Iran’s missile attack hit the news wires, oil gave back all of those gains to finish much lower on the day. Brent is very close to daily support regions.
The news from the Energy Information Administration that U.S. crude supplies edged up by 1.2 million barrels for the week ended Jan. 3, hit prices hard as this had followed declines in each of the previous three weeks. Analysts had expected to report a drop of about 3.6 million barrels.
Energy companies in the region may need to take on more debt if oil prices keep falling, said Rory Fyfe, chief economist at U.K.-based MENA Advisors. Benchmark Brent crude slid about 10% last year to an average of about $64 a barrel, and growth in oil demand shows signs of faltering. Access to cheap financing could also stimulate borrowing.
“Gulf issuers are very opportunistic, and if we see lower global rates, we could see oil companies coming back to the market,” he said.
Technical Analysis:
In the near term, the price will likely target the support zone. Once its price reaches this zone, a rejection could cause it to rise until it reaches its first resistance zone, which could spark a bounce.
A clear close above the key resistance zone could offer new entries for high-return gains in the near term. The next major hurdle is near the $75.5 level.
Please, let us know what you think about USD/BRO in the comment section below.
We appreciate the continued support that PrimeXBT has received from readers and traders like you, and hope you have great success with all your future trades!
Fundamental Analysis and News:
Oil had its wildest day since the Saudi Arabia attacks last year. After spiking aggressively as news of Iran’s missile attack hit the news wires, oil gave back all of those gains to finish much lower on the day. Brent is very close to daily support regions.
The news from the Energy Information Administration that U.S. crude supplies edged up by 1.2 million barrels for the week ended Jan. 3, hit prices hard as this had followed declines in each of the previous three weeks. Analysts had expected to report a drop of about 3.6 million barrels.
Energy companies in the region may need to take on more debt if oil prices keep falling, said Rory Fyfe, chief economist at U.K.-based MENA Advisors. Benchmark Brent crude slid about 10% last year to an average of about $64 a barrel, and growth in oil demand shows signs of faltering. Access to cheap financing could also stimulate borrowing.
“Gulf issuers are very opportunistic, and if we see lower global rates, we could see oil companies coming back to the market,” he said.
Technical Analysis:
In the near term, the price will likely target the support zone. Once its price reaches this zone, a rejection could cause it to rise until it reaches its first resistance zone, which could spark a bounce.
A clear close above the key resistance zone could offer new entries for high-return gains in the near term. The next major hurdle is near the $75.5 level.
- Day's Range: $64.58 — 66.08
- Support Zone: $59.8 — 62.5
- Resistance Zone: $69.65 — 70.7
- Resistance Target Levels: $75.50, 80.05, 86.05
Please, let us know what you think about USD/BRO in the comment section below.
We appreciate the continued support that PrimeXBT has received from readers and traders like you, and hope you have great success with all your future trades!
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