Fundamental analysis
USOIL fell to $60 per barrel on Fri, extending the drop from previous days and hitting their lowest since April 2021. Escalating US-China trade tensions, with China raising tariffs on US goods to 125% and the US now imposing 145% in total tariffs, stoked fears of weakening global demand.
The EIA downgraded its global growth outlook, warning trade friction may further curb oil demand. Meanwhile, a surprise move by OPEC+ to accelerate output hikes added to concerns about oversupply.
Technical analysis
Crude oil price remains below the EMA21 and EMA78, with both EMAs remaining downward.
The price has corrected to the 50% Fibonacci retracement level, then consolidated around the psychological level of 60.00.
If the price continues downward, the next support level could be around 59.00 and 55.00, the 78.6% and 100% Fibonacci levels, respectively.
Conversely, if it manages to recover upward, the next resistance level could be found around 61.60 before reaching 63.63.
By María Agustina Patti, Financial Markets Strategist at Exness
USOIL fell to $60 per barrel on Fri, extending the drop from previous days and hitting their lowest since April 2021. Escalating US-China trade tensions, with China raising tariffs on US goods to 125% and the US now imposing 145% in total tariffs, stoked fears of weakening global demand.
The EIA downgraded its global growth outlook, warning trade friction may further curb oil demand. Meanwhile, a surprise move by OPEC+ to accelerate output hikes added to concerns about oversupply.
Technical analysis
Crude oil price remains below the EMA21 and EMA78, with both EMAs remaining downward.
The price has corrected to the 50% Fibonacci retracement level, then consolidated around the psychological level of 60.00.
If the price continues downward, the next support level could be around 59.00 and 55.00, the 78.6% and 100% Fibonacci levels, respectively.
Conversely, if it manages to recover upward, the next resistance level could be found around 61.60 before reaching 63.63.
By María Agustina Patti, Financial Markets Strategist at Exness
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.