On Monday, the U.S. Department of Energy (DOE) announced that in an effort to keep the price of the “black gold” down they will be releasing around 26 million barrels from the SPR (Strategic Petroleum Reserve) ,which is already at its lowest level since December 1983, lifting some supply concerns from the market.. In a monthly report, the Organization of the Petroleum Exporting Countries (OPEC) raised its 2023 oil demand forecast by 100,000 barrels per day, citing the reopening of the Chinese economy after COVID restrictions.
On the technical side the price of crude oil has made a steady bearish movement for the last 4 months after finding strong resistance on the daily bearish trendline. Recently the price failed to break above its trendline showing that the bears are strong in the oil market while the Stochastic oscillator recorded overbought levels. For the near short term outlook the price of oil is most likely to continue its overall bearish momentum with a first point of support laying around the $76 area which is just above the 23.6% of the daily Fibonacci retracement level .
In the event that the price manages to break above the trendline then the next point of resistance could be seen possibly around $81,50 area which consists of an area just below the 50% of the Fibonacci and also the 100 day moving average,
On the technical side the price of crude oil has made a steady bearish movement for the last 4 months after finding strong resistance on the daily bearish trendline. Recently the price failed to break above its trendline showing that the bears are strong in the oil market while the Stochastic oscillator recorded overbought levels. For the near short term outlook the price of oil is most likely to continue its overall bearish momentum with a first point of support laying around the $76 area which is just above the 23.6% of the daily Fibonacci retracement level .
In the event that the price manages to break above the trendline then the next point of resistance could be seen possibly around $81,50 area which consists of an area just below the 50% of the Fibonacci and also the 100 day moving average,