Oil prices fell due to concerns about higher-than-expected inflation potentially delaying U.S. interest rate cuts. The market is caught between bullish factors such as lower OPEC output and bearish concerns about weak demand in China after the Lunar celebrations came to an end and international traveling from and to China has slowed down. Anticipation of falling oil stockpiles as refineries return from maintenance could offer some support to prices in the coming weeks. Also if we take a look at the commitment of traders report the commercial traders are near the yearly high meaning that energy prices might rebound in the near future.
On the technical side, the price is currently trading near the support area of the previous low of mid-February while the 50-day moving average is on the move to cross above the 100-day moving average indicating that there might be a confirmation of a bullish trend. At the same time, the Stochastic oscillator is near the extreme oversold levels indicating that a correction to the upside might be the dominant scenario in the near short term. For the time being the bullish trendline which has been tested multiple times in the recent past is still not broken therefore the medium outlook on crude oil is bullish.
On the technical side, the price is currently trading near the support area of the previous low of mid-February while the 50-day moving average is on the move to cross above the 100-day moving average indicating that there might be a confirmation of a bullish trend. At the same time, the Stochastic oscillator is near the extreme oversold levels indicating that a correction to the upside might be the dominant scenario in the near short term. For the time being the bullish trendline which has been tested multiple times in the recent past is still not broken therefore the medium outlook on crude oil is bullish.