Oil prices rebounded as markets focused on a tighter crude supply outlook for the rest of 2023. Demand is expected to remain strong while fears of deficient supplies are driving prices higher. Saudi Arabia and Russia's extension of oil output cuts will lead to a market deficit through the fourth quarter, according to the International Energy Agency. The lack of cuts in 2024 could create a surplus, but stocks will be at uncomfortably low levels.
‘OPEC also forecasts robust growth in global oil demand in 2023 and 2024. Despite a surprise build in US crude and fuel inventories, expectations of the Federal Reserve not raising interest rates and strong oil demand continue to support prices.’ said Antreas Themistokleous, market analyst at Exness.
On the technical point of view the price has been trading in an upward channel for almost one month and is currently testing the lower boundary of the channel. The 50 day moving average is trading well above the 100 day moving average indicating that the overall bullish momentum is still valid and it is possible to see the price continuing its rally in the coming sessions.
On the other hand the Stochastic oscillator is near its extreme overbought level possibly signaling that a minor correction might happen in the near short term. In case this happens then the first major technical support level might be seen around $87.50 which consists of the 38.2% of the weekly Fibonacci retracement level.
‘OPEC also forecasts robust growth in global oil demand in 2023 and 2024. Despite a surprise build in US crude and fuel inventories, expectations of the Federal Reserve not raising interest rates and strong oil demand continue to support prices.’ said Antreas Themistokleous, market analyst at Exness.
On the technical point of view the price has been trading in an upward channel for almost one month and is currently testing the lower boundary of the channel. The 50 day moving average is trading well above the 100 day moving average indicating that the overall bullish momentum is still valid and it is possible to see the price continuing its rally in the coming sessions.
On the other hand the Stochastic oscillator is near its extreme overbought level possibly signaling that a minor correction might happen in the near short term. In case this happens then the first major technical support level might be seen around $87.50 which consists of the 38.2% of the weekly Fibonacci retracement level.