Oil price relinquished as it approaches monthly highs.
“Tightness in the market may prompt Saudi to increase their oil production.”
Crude oil price extended its pullback on Thursday, ahead of key meeting among producers later in the day. According to reports, some economist speculated that Saudi Arabia may increase their oil production in response to urging repeated calls from the United States. The speculation was formed based on decreasing output from Russia after Western powers enforced sanctions due to its invasion in Ukraine.
Quick recap on USOIL
Oil prices gave up its gains after briefly spiking up to 120.00 psychological threshold.
USOIL Weekly Technical Analysis
From weekly perspective, oil price is skewed towards the upside. However, it is worth noting that a possible pullback is imminent as it fails to breach 114.95 for the fourth day.
USOIL Daily Technical Analysis
In terms of daily perspective, oil price is set to extend its losses, towards the direction of 108.03. This was signalled concurrently with its price action as well as decreasing momentum from MACD.
Trading Idea
ORDER: SELL STOP
ENTRY: 111.30
STOP LOSS: 114.30
Target 1: 108.05
Target 2: 105.80
ZFX Analyst’s Comment
As of writing, oil price exert possibility for a pullback in the near-term. The commodity has an ample of room for retracement prior to continuation of its bullish trend as seen in the daily timeframe.
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Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.
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