Oil outlook: Remains under pressure as growing demand concerns offset supply fears

Slobodan Drvenica Windsor Brokers

WTI Oil

WTI oil price came under pressure from fresh demand concerns on the latest talks that the US economy might enter recession, as disappointing US economic data point to such scenario, offsetting calming tones from US official that the economy remains resilient and so far in good condition, heading towards soft landing.

It seems that this may not be the case, as panic spilled over the markets, with stocks being hit the most and rumors that the Fed may hold an emergency meeting the soonest possible, to cut interest rates and try to at least partially reduce the damage, caused by some wrong decisions taken in past couple of years by the central bank.

Growing demand fears continue to push the price down, though this could be partially offset by increased supply concerns if geopolitical situation in the Middle East deteriorates (many signals currently point to scenario that larger conflict is inevitable).

Bears eye psychological $70 support and next key levels at $68.50 (monthly cloud base) and $67.70 (December 2023 low).

Former low of July 30 ($74.60) offers immediate resistance, followed by falling daily Tenkan-sen ($75.26) and broken Fibo 61.8% ($77.06).

Res: 74.60; 75.26; 76.34; 77.06.
Sup: 72.46; 71.66; 70.00; 68.50.

Interested in Oil technicals? Check out the key levels

1. R3 80.33
2. R2 78.53
3. R1 76.08
PP 74.28
1. S1 71.84
2. S2 70.04
3. S3 67.59

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

EUR/USD remains offered below 1.1800, looks at US data

EUR/USD is still trading on the defensive in the latter part of Thursday’s session, while the US Dollar maintains its bid bias as investors now gear up for Friday’s key release of the PCE data, advanced Q4 GDP prints and flash PMIs.

GBP/USD bounces off monthly lows near 1.3430

GBP/USD is sliding in tandem with its risk-sensitive peers, drifting back towards the 1.3430 area, its lowest levels in the month. The move reflects a firmer Greenback, supported by another round of solid US data and a somewhat divided FOMC Minutes.

Gold drifts higher to near $5,000 on heightened US-Iran tensions

Gold price holds positive ground near $5,000 during the early Asian session on Friday. The precious metal edges higher as escalating tensions between the United States and Iran boost safe-haven demand. Traders brace for the preliminary reading of US Gross Domestic Product for the fourth quarter, the Personal Consumption Expenditures and the S&P Global Purchasing Managers Index data, which are due later on Friday.

Ethereum: Active addresses halt growth as US selling pressure eases

Ethereum network growth has declined after two months of explosive increase. US selling pressure has eased following an improvement in the Coinbase Premium Index. ETH extends its range-bound move below the $2,107 resistance and above $1,740 .

Hawkish Fed minutes and a market finding its footing

It was green across the board for US Stock market indexes at the close on Wednesday, with most S&P 500 names ending higher, adding 38 points (0.6%) to 6,881 overall. At the GICS sector level, energy led gains, followed by technology and consumer discretionary, while utilities and real estate posted the largest losses.

Injective token surges over 13% following the approval of the mainnet upgrade proposal

Injective price rallies over 13% on Thursday after the network confirmed the approval of its IIP-619 proposal. The green light for the mainnet upgrade has boosted traders’ sentiment, as the upgrade aims to scale Injective’s real-time Ethereum Virtual Machine architecture and enhance its capabilities to support next-generation payments.