Following OPEC+’s pledge to reduce production, the U.S. benchmark surged by more than 6% this week, with hedge funds purchasing crude oil throughout the week, signaling a renewed interest in a “risk-on” market.
For the second consecutive week, oil prices received a boost from a more significant than expected drop in U.S. crude inventories. Moreover, the decrease in gasoline and distillate stockpiles hinted at a surge in demand. Additionally, U.S. energy companies reduced the number of oil rigs for the second week in a row, which could imply a decline in future production.
On the other hand, the latest U.S. labor market figures indicate a deceleration in economic expansion, while the services sector experienced a slower-than-anticipated growth rate. This has raised worries that the negative effects of demand destruction owing to a possible recession might outweigh the benefits of OPEC+ cuts.
The prevalence of put option buyers over call option buyers implies that traders are anxious about a potential drop in prices. Nevertheless, the current context of supply constraints implies that there is still room for price hikes, despite the brief interruption in bullish momentum.
For the second consecutive week, oil prices received a boost from a more significant than expected drop in U.S. crude inventories. Moreover, the decrease in gasoline and distillate stockpiles hinted at a surge in demand. Additionally, U.S. energy companies reduced the number of oil rigs for the second week in a row, which could imply a decline in future production.
On the other hand, the latest U.S. labor market figures indicate a deceleration in economic expansion, while the services sector experienced a slower-than-anticipated growth rate. This has raised worries that the negative effects of demand destruction owing to a possible recession might outweigh the benefits of OPEC+ cuts.
The prevalence of put option buyers over call option buyers implies that traders are anxious about a potential drop in prices. Nevertheless, the current context of supply constraints implies that there is still room for price hikes, despite the brief interruption in bullish momentum.
Comment:
on a crucial level to complete wave 4 .wait to see more upward from here .if the level broken we will change our plan