Brent oil is paring some of last week’s gains as the US dollar reasserts its negative correlation with this key commodity.
Oil markets are now more wary of the prospects of more demand-destroying Fed rate hikes over the coming months, while sentiment was further soured by US inventories having risen this week by the most since 2021.
Brent oil has been thwarted at its 100-day simple moving average (SMA) once more, and is testing its 50-day SMA for immediate support.
In order for oil to break above its 100-day SMA resistance, the optimism surrounding China’s economic reopening must be able to punch through.
And of course, the clearer signal for oil bulls to finally go charging once more would be when the Fed as well as other major central banks can officially signal an end to their respective rate-hike regimes.
Brent oil is taking a pause just below $80/bbl mark, after having staged a comeback in the second half of March.
31 March 12:27
Brent oil is paring some of its gains this week, having rebounded off the psychologically-important $70 mark. Still, the global oil benchmark appears poised to head into the weekend having registered its first weekly advance in three weeks.
24 March 12:21
The global oil benchmark is endeavoring to pick itself off a 15-month low and trim its largest weekly drop so far in 2023. The outlook for short-term demand has been hit by contagion fears following the Silicon Valley Bank and Credit Suisse banking crises as risk-off appetite and dollar volatility roiled markets.
17 March 12:03
Brent’s climb above its 50-day simple moving SMA proved short-lived, as prices were resisted at their 100-day SMA before hurtling back down towards the psychologically-important $80/bbl mark.
10 March 12:36
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