Crude Oil Analysis
Afternoon Session: Ahead of EIA Inventory report, will crude surpass the crucial juncture or resistance to fly high? Or take U turn?
Highlights:
- Crude oil$ prices look to get support at 73.00$ and resistance at 76.00$.
- Crude oil prices were little changed as weak demand and a recovery in supply.
- At Critical resistance zone 6030-80.
Overview:
Crude oil prices were little changed as weak demand and a recovery in supply limited the market's reaction to mounting geopolitical risk. Libya had restarted oil exports and U.S. supply had started to recover from a recent cold snap limited price rises. Libya's 300,000 bpd Sharara oilfield restarted on Jan. 21 after a protest-related pause since early January. Stocks of crude oil in the US declined by 6.674 million barrels in the week that ended January 19th, 2024, after a 0.483 million barrels increase in the previous week.
Outlook:
Crude oil in MCX rose and trading at critical resistance zone which is 6230-80 levels. As per earlier post we had achieve the targets and rose more than that. In the continuation of it, we are now at the resistance zone. So once must watch this level closely and take the further action if it didn’t breach the said zone. If it fails to break and rise it will fall hard till 1st support zone at 6100 followed by 2nd support zone 6004. So one can take the sell position till 6250 for said targets which invalidates above 6280.
Support and Resistance Levels:
