Outlook on USOIL
Technical Perspective:
USOIL pared recent gains as the price reversed below the 84.00 resistance. A further throwback towards the 78.00 support might occur, which aligns with the last consolidation zone before prices broke above the high near 80.00. If USOIL regains its bullish momentum above 78.00, a further rise to retest 84.00 might occur. A breach above 84.00 could prompt a further rise towards the next resistance zone at 86.00. Conversely, a breakout below 78.00 could prompt a further retracement towards the 72.00 support.
Fundamental Perspective
US crude oil inventories fell by 1.92 mln barrels last week, with a drawdown at Cushing, Oklahoma, highlighting ongoing supply constraints from OPEC+ production cuts.
Weather-related risks that could disrupt oil production have also receded. Markets remain focused on a potential ceasefire, which could ease geopolitical tensions in the Middle East and supply concerns.
Moreover, uncertainties about the Fed easing could temper the upward momentum of oil prices.
USOIL pared recent gains as the price reversed below the 84.00 resistance. A further throwback towards the 78.00 support might occur, which aligns with the last consolidation zone before prices broke above the high near 80.00. If USOIL regains its bullish momentum above 78.00, a further rise to retest 84.00 might occur. A breach above 84.00 could prompt a further rise towards the next resistance zone at 86.00. Conversely, a breakout below 78.00 could prompt a further retracement towards the 72.00 support.
Fundamental Perspective
US crude oil inventories fell by 1.92 mln barrels last week, with a drawdown at Cushing, Oklahoma, highlighting ongoing supply constraints from OPEC+ production cuts.
Weather-related risks that could disrupt oil production have also receded. Markets remain focused on a potential ceasefire, which could ease geopolitical tensions in the Middle East and supply concerns.
Moreover, uncertainties about the Fed easing could temper the upward momentum of oil prices.
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