The global oil benchmark is on course to post a weekly advance of over 3%, ending a run of four straight weekly declines.
Oil prices have enjoyed a risk-on lift this week from optimism that the US will indeed avoid a default.
However, oil bulls still have much to do to restore Brent back to the $80-$90/bbl range.
Prices must first overcome last week’s high at $77.49 before the 50-day simple moving average (SMA) lies in wait to potentially offer stronger resistance.
Oil’s upside is likely to be capped until markets can put to bed the angst surrounding the looming recession, especially if the Chinese economy can offer evidence of a broader and more resilient recovery.
A re-emergence of demand-side fears could invite bears to target the following lower levels:
Markets are widely expecting that OPEC+ would stand pat on its production levels at its weekend meeting.
2 June 13:21
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.
26 May 13:57
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.
12 May 12:21
Brent’s recent rebound is unlikely to be sustained as long as negative sentiment continues to cloud oil markets.
5 May 11:57
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