API Information Units up Brent Crude Forward of EIA and FOMC

API Information Units up Brent Crude Forward of EIA and FOMC

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BRENT CRUDE OIL (LCOc1) TALKING POINTS

  • Grim international outlook weighs on brent.
  • U.S. financial information in focus later right this moment.
  • Brent crude buying and selling at key space of confluence.

BRENT CRUDE OIL FUNDAMENTAL BACKDROP

Brent crude oil has marginally recovered in early buying and selling after yesterday’s API Crude Inventory Change information shocked to the draw back reflecting a discount in U.S. inventories by 448Mbbls (EST: 117Mbbls). Trying again on the CoT report under, we are able to see a slight uptick in open curiosity on brent crude oil after reaching lows final seen in 2015 – predominantly as a consequence of market hesitancy by way of oil forecasts. This has a lot to do with the present geopolitical state of affairs stemming from Russia/Ukraine which has now been exacerbated by slowing international development issues whereas different elements just like the Iranian nuclear deal provides extra complexity to the ahead outlook.

BRENT CRUDE FUTURES COMMITMENT OF TRADERS OPEN INTEREST

Supply: Refinitiv

Later right this moment, we look ahead to EIA information in addition to key U.S. financial information (see financial calendar under) together with retail gross sales, however the principle focus for right this moment will come from the FOMC minutes launch. Markets are on the lookout for ahead steering as as to whether or not the Federal Reserve will look to ease financial coverage in 2023 or look to quell the ‘pivot’ discuss and keep interest rate hikes. Cash markets are presently favoring the easing narrative and may the FOMC push again, the dollar good discover some bids and weigh negatively on brent crude costs.

Learn more about Crude Oil Trading Strategies and Tips in our newly revamped Commodities Module!

ECONOMIC CALENDAR

economic calendar

Supply: DailyFX Economic Calendar

TECHNICAL ANALYSIS

BRENT CRUDE (LCOc1) DAILY CHART

brent crude oil chart

Chart ready by Warren Venketas, IG

Pushing off 6-month lows, price action on the each day brent crude chart above has the 91.79 (38.2% Fibonacci) holding as short-term assist. A key stage that might spark a transfer decrease ought to bears handle to pierce under.

Key resistance ranges:

  • 100.00
  • 20-day EMA (purple)
  • 95.00

Key assist ranges:

IG CLIENT SENTIMENT: BEARISH

IGCS reveals retail merchants are NET LONG on Crude Oil, with 74% of merchants presently holding lengthy positions (as of this writing). At DailyFX we usually take a contrarian view to crowd sentiment nevertheless, as a consequence of latest adjustments in lengthy and brief positioning we choose a short-term draw back bias.

Contact and comply with Warren on Twitter: @WVenketas





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