So much for that upside breakout last week.
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.
Overall, Brent has been rangebound so far this year, and is set for its biggest weekly loss in 5 weeks.
Fed Chair Jerome Powell’s hawkish statements this week triggered a risk-off wave coursing through financial markets, as the surging US dollar heaped downward pressure on the commodities complex.
As the likes of the Fed and the ECB pledge more rate hikes in order to vanquish stubbornly-elevated inflation, the prospects of further policy tightening threaten to undermine global demand for oil.
Such fears are being manifested in the bearish structures in the oil options market, offsetting the optimism surrounding China’s economic reopening.
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
At the time of writing, Brent has resurfaced above its 50-day simple moving average (SMA), while also breaking past the upper bound of its downtrend that began since June 2022, as it looks to register back-to-back weekly advances.
3 March 11:28
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