Crude Oil Price Review: Bullish Correction AheadThe recent bearish gap in crude oil prices could be setting up for a bullish correction, as technical indicators highlight key target areas for a rebound, signaling a potential upward trend.
The Commitment of Traders (COT) report supports this outlook if large institutional players are increasing long positions, adding to the bullish momentum.
Historical US election trends also play a role, as policy shifts related to energy can drive expectations of higher demand, which often leads to upward price adjustments.
Meanwhile, upcoming economic data, including the US PCE index, jobs report, and manufacturing PMI, will influence this trajectory, with higher-than-expected inflation possibly leading to rate hikes, which could temper growth and suppress oil demand.
However, should these indicators point to economic resilience, it would bolster the case for a rally, feeding into a narrative where crude oil prices might see a short-term climb in anticipation of both policy impacts and resilient demand.
