Home > Market Analysis > Market news & Insights > Oil Price Looks for Another Price Low Attempt

Oil Price Looks for Another Price Low Attempt

ATFX
Recent news

Oil prices slumped as low as $64 this week, but a sharp rally to $70 will give bulls another shot at a low.

USOIL – Daily Chart

The $70 level has been a key support for the US crude oil price, and black gold will have to find continued strength to claim this as a low.

On Tuesday, the latest data from the American Petroleum Institute said that US crude inventories rose by around 3.3 million barrels this week, which would be negative after 1.6 million barrels of drawdown was expected. Data from the Energy Information Administration will confirm or deny that figure on Wednesday.

Crude Oil Forecast

Traders are placing more weight on the hopes of a pause in interest rates from the US Federal Reserve. The market expects the Fed to raise rates by 25 basis points on Wednesday. Still, many analysts feel they will pause or delay rate hikes while waiting for the banking sector to strengthen. A pause in interest rate hikes would boost economic activity and fuel demand.

Last Updated: March 23, 2023

This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.