Trading | 5 months ago
Crude oil prices jumped to 6% on Wednesday after the United States inventory figures showed a positive rebound in the refining activity. The crude benchmarks which are defined by United States crude and London based Brent, gained a massive upside support. This jump in oil price was also supported by US Energy Information Administration data which reported that multiple oil refineries are coming out of maintenance and recovering from the power outages.
Brent crude settled at $64.41 a barrel, gaining 6% on Wednesday as compared to the previous trading session. However, on Tuesday Brent crude fell by 5.9%. West Texas Intermediate (WTI) gained $3.49, or 6%, to $61.25 on Wednesday. This was a technical rebound. This technical rebound was also supported by a report of a vessel blockage in the Suez Canal waterway. At least 10% of the world’s oil passes through the Suez Canal.
Oil prices had reached to oversold conditions that wiped out 11% of the price value in this month. This massive gain of 6% on Wednesday helped to stabilize the oil market, which had slumped from early this month. So far Oil prices has recovered from historic lows which was reached last year. As many European nations re-entered the economic lockdowns to halt another wave of the pandemic, we may see a 10 to 15% correction in the oil prices.
Currently crude oil is trading at $60.30 price level and it has just broken the support level of $63. So, one must look for short-term selling opportunities in crude oil at this moment. look for buying opportunities after 15% price correction in oil.
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