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Oil Turning Higher Again
Following a brief correction lower from YTD highs, crude oil prices are turning higher again into the end of the week. The move comes on the back of the news that Russia has announced restrictions on the export of diesel and gasoline. The ban on exports takes another 3.4% off the daily global supply. Coming quickly on the back of OPE+ extending its recent cuts (which themselves cut 1.5% from daily global supply), the news has resharpened the case for bulls.
OPEC+ in Focus
Market tightness has been a key focus for oil traders recently. With the global demand outlook falling, in line with rising global recession risks, the stripping back of supply has helped crude prices rally more than 30% off the YTD lows. Fears over the health of the Chinese economy in particular have been a big concern for oil markets. However, in recent months it seems the OPEC+ cuts have overtaken this issue. With Russia now announcing fresh cuts, the near-term outlook for crude looks firmly bullish with some big names now adjusting their year-end forecasts to reflect $100 per barrel in crude.
Technical Views
Crude
The rally in crude stalled as it neared the 93.47 resistance level. However, the correction proved short-lived and the market is now turning higher once again. With momentum studies bullish, the focus is on a break of the 93.47 level and a continuation higher towards the 100-mark next.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.