Oil remains steady after reserves release announcement
The release of oil reserves was expected to lead to lower oil prices, but instead, WTI Crude Oil has remained steady after a spike. It currently trades just above $78, but upward momentum has been limited. There is short-term resistance at $78.65 and bulls will be looking to close above this figure. However, bearish pressure could lead to a drop back to November lows. If bulls do push the price up, $80.50 will be an important resistance level to look out for. Currently, we see price consolidating and we could soon see a trend emerge.
Joe Biden's announced that over 50 million barrels are set to be released with coordination from Japan, China and India. The aim is to lower energy prices, however, OPEC+ producers may respond based on future price action. Traders will be looking out for weekly crude inventories data and other key US economic releases.
After hitting 7-year highs, analysts will be wondering whether Crude Oil will be adversely affected by potential demand shortages as a result of increasing Covid-19 cases and possible lockdowns. investors may possibly see this as a short-term trend, but the USOIL price could react if there are greater concerns about lower demand.
Joe Biden's announced that over 50 million barrels are set to be released with coordination from Japan, China and India. The aim is to lower energy prices, however, OPEC+ producers may respond based on future price action. Traders will be looking out for weekly crude inventories data and other key US economic releases.
After hitting 7-year highs, analysts will be wondering whether Crude Oil will be adversely affected by potential demand shortages as a result of increasing Covid-19 cases and possible lockdowns. investors may possibly see this as a short-term trend, but the USOIL price could react if there are greater concerns about lower demand.