Oil on the Edge! Key Data in the American Session today
The crude oil market has experienced a reduction in demand this week, holding prices steady since Monday, after weeks of losses in value due to a decrease in demand, especially from the main importer, the Chinese market which put the price on Monday at $76.49. During today's Asian session, crude oil has shown a 3.62% increase from Wednesday's European open to the current high of $80.31.
Although Chinese buying data increased in the first two months of the year compared to the same period last year, being lower than previous months. This day's American session will be influenced by key data such as manufacturing production, retail sales and the US unemployment rate, which will determine the evolution in the demand for oil and its derivatives and will present us whether the US economy is robust enough to sustain current prices in an environment of slowing global productive demand.
From a technical perspective, the RSI shows a highly overbought level of 70.44%, with weak trading volumes, and a marked checkpoint at $78.09 represented in a mono-bell. This presents us with three possible scenarios:
- If expectations are positive for the non-U.S. market, prices could reach $85, a significant price barrier since last November.
- If the market remains stable, prices are likely to remain sideways with no major movements moving between $77 and $80.
- If the U.S. outlook is negative, price is likely to retreat back toward $76, an area of strong trading since mid-February.
This afternoon's news will be crucial for the evolution of the crude oil market, so it is recommended to stay tuned.
Ion Jauregui - AT Analyst
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
Although Chinese buying data increased in the first two months of the year compared to the same period last year, being lower than previous months. This day's American session will be influenced by key data such as manufacturing production, retail sales and the US unemployment rate, which will determine the evolution in the demand for oil and its derivatives and will present us whether the US economy is robust enough to sustain current prices in an environment of slowing global productive demand.
From a technical perspective, the RSI shows a highly overbought level of 70.44%, with weak trading volumes, and a marked checkpoint at $78.09 represented in a mono-bell. This presents us with three possible scenarios:
- If expectations are positive for the non-U.S. market, prices could reach $85, a significant price barrier since last November.
- If the market remains stable, prices are likely to remain sideways with no major movements moving between $77 and $80.
- If the U.S. outlook is negative, price is likely to retreat back toward $76, an area of strong trading since mid-February.
This afternoon's news will be crucial for the evolution of the crude oil market, so it is recommended to stay tuned.
Ion Jauregui - AT Analyst
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
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