Market reviews

Although on course for back-to-back weekly gains, oil’s advance for this week was significantly pared after Russia hinted that another OPEC+ supply cut may not be forthcoming at its early June meeting.

The global oil benchmark is on course to post a weekly advance of over 3%, ending a run of four straight weekly declines.

As mentioned in last Friday’s article, “Brent’s recent rebound is unlikely to be sustained …”. Sure enough, the global oil benchmark is unwinding some of its technical rebound, as demand-side fears continue to fester across markets.

Brent’s recent rebound is unlikely to be sustained as long as negative sentiment continues to cloud oil markets.

Gold is in a current correction phase after scaling the heights above $2000 earlier this month. Price action can always be more cautious as an asset approaches a big round number and psychological level like this.

At the time of writing, Brent is attempting to rebound after dropping close to the psychologically-important $80/bbl mark.

Brent oil is pulling away from its mid-week peak, unable to hold recent gains despite Thursday’s weaker US dollar in light of that larger-than-expected drop in US producer prices.

OPEC+ has stunned markets once again! The alliance of oil-producing nations announced an unexpected supply cut of over 1 million barrels per day starting in May. And as we know, when supply is lowered (ceteris paribus: all else equal), prices then rise.

Brent oil is taking a pause just below $80/bbl mark, after having staged a comeback in the second half of March.

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.

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.

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.

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.

With Brent being forced into a triangle pattern, it suggests a looming break-out over the near-term.