Oil Prices Have a Clear Range After Recent Bounce

Oil prices have bounced at the previous support of $64.10 and now have a precise range of $82.50.

USOIL – Daily Chart

USOIL – Daily Chart

USOIL recently collapsed at the $82.50 level and has two groups for a breakout to the upside or downside. 

Oil prices rose on Tuesday due to a tighter gasoline market outlook and a warning from OPEC that hinted at further production cuts by the group. USOIL rose to $73.32 as the bounce continued from recent lows. 

Gasoline futures rose 1% on Tuesday, with analysts expecting a third straight weekly decline in coming inventories this week, ahead of the Memorial Day holiday on May 29, which starts the summer demand season. 

The American Petroleum Institute reports data on Tuesday, followed by the US Energy Information Administration’s (IEA) official data on Wednesday. That could see further demand for oil prices in the coming week. 

Production cuts by OPEC+ members will take effect this month, which could add to a squeeze on supplies.

Crude Oil Market Forecast

Saudi Arabia’s energy minister said that short sellers should “watch out”. The comments could mean OPEC+ will reduce production further when it meets on June 4

The oil price will also depend on the US dollar, with White House and Republican negotiators meeting again on Tuesday to solve the stalemate over the $31.4 trillion US debt limit, with Washington facing a default in less than nine days. 

The (IEA) also said it does not expect the Group of Seven nations’ recent moves on Russian price caps to change the supply picture for crude oil. The G7, the European Union, and Australia agreed on a $60-per-barrel price cap on Russian seaborne crude and set an upper price limit for Russian oil products to cut revenue for Russia. 

“Any significant changes in the markets as always we will reflect in our analysis, in our reports, but for the time being I don’t see a reason to make a change in our analysis,” the group said.

Recent News
Start Trading Now !

Try our demo account for free to learn trading. When you’re ready, switch to a live account and start trading for real.

Popular posts

ATFX

The Firm has taken the decision to cease providing services to retail clients, with immediate effect. We are therefore unable to accept any applications.

Services to professional clients will not be impacted. For professional applications please contact [email protected]

ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://www.atfx.com/ar/ to proceed.
ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://www.atfx.com/en/ to proceed.

ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://atfxgm.eu/en/ to proceed.

ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://www.atfx.com/en-au/ to proceed.

ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://www.atfx.com/ar/ to proceed.
ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://www.atfx.com/en/ to proceed.

ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://www.atfx.com/en-za/ to proceed.
ATFX

Restrictions on Use

Products and Services on this website are not suitable for Hong Kong residents. Such information and materials should not be regarded as or constitute a distribution, an offer, solicitation to buy or sell any investments.

使用限制: 本網站的產品及服務不適合香港居民使用。網站內部的信息和素材不應被視為分銷,要約,買入或賣出任何投資產品。

ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://atfxgm.eu/en/ to proceed.

ATFX

Restrictions on Use

AT Global Markets (UK) Limited does not offer trading services to retail clients.
If you are a professional client, please visit https://atfxconnect.com