Crude oil prices are currently in a phase of strong bullish momentum build up after a strong move on Monday mostly due to some exports from Iraq's Kurdistan region being on halt. Prices were boosted as Turkey stopped pumping crude from Kurdistan, amounting to 450,000 barrels per day or 0.5% of the global oil supply, following a decision that confirmed Baghdad's consent was needed to ship the oil.
‘On the demand side , China’s crude oil imports are expected to rise by more than 6% in 2023 according to China National Petroleum Corp. Oil prices were also boosted by geopolitical tensions once again after President Putin commented on plans to station tactical nuclear weapons in Belarus.’ said Antreas Themistokleous, market analyst in Exness. ‘ Investors and traders are on the sidelines for the time being not only due to geopolitical reasons but also awaiting any developments in the banking industry that could potentially spark fear in the market for commodities.‘
On the technical side the price of Crude oil is performing a bullish rally and is currently trading just above the 50% of the daily Fibonacci retracement level. The Stochastic oscillator is not showing any overbought or oversold levels and there are no signals for a reversal at least in the short term. In the event of continuous push up the first point of resistance might be around the $75 which consists of the psychological resistance of the round number and the crossing of the 50 day moving average on the 61.8% of the Fibonacci level.
If the price makes a correction to the downside then support might be expected around the $71 area which is made up of the 38.2% of the Fibonacci retracement level and also the inside support area since early December 2022.
‘On the demand side , China’s crude oil imports are expected to rise by more than 6% in 2023 according to China National Petroleum Corp. Oil prices were also boosted by geopolitical tensions once again after President Putin commented on plans to station tactical nuclear weapons in Belarus.’ said Antreas Themistokleous, market analyst in Exness. ‘ Investors and traders are on the sidelines for the time being not only due to geopolitical reasons but also awaiting any developments in the banking industry that could potentially spark fear in the market for commodities.‘
On the technical side the price of Crude oil is performing a bullish rally and is currently trading just above the 50% of the daily Fibonacci retracement level. The Stochastic oscillator is not showing any overbought or oversold levels and there are no signals for a reversal at least in the short term. In the event of continuous push up the first point of resistance might be around the $75 which consists of the psychological resistance of the round number and the crossing of the 50 day moving average on the 61.8% of the Fibonacci level.
If the price makes a correction to the downside then support might be expected around the $71 area which is made up of the 38.2% of the Fibonacci retracement level and also the inside support area since early December 2022.