Today’s Asian trading session saw Crude Oil prices climbing, breaching the $85 benchmark.
The ascension in crude oil futures this Wednesday can largely be attributed to apprehensions surrounding supply constraints.
Recent developments have highlighted continuous drone assaults by Ukraine on Russian oil refining facilities, significantly hampering Russia’s crude production and its export capabilities.
Moreover, escalating tensions in the Middle East have compounded worries about the continuity of crude oil supplies. This unease was intensified by Iran’s vow of retribution against Israel following an airstrike that resulted in the loss of vital military figures at its embassy in Damascus, adding layers of unpredictability to the market.
In another significant move, Mexico’s national oil firm, Pemex, instructed its trading division to halt nearly 436,000 barrels of its scheduled crude oil exports for April.
Further stirring the market, a recent report from the American Petroleum Institute disclosed a notable reduction in U.S. crude oil stocks, which diminished by 2.28 million barrels in the week up to March 29. This decline exceeded the anticipations of a 2 million barrel drop, underscoring the current supply-side pressures in the crude oil market.
Technical analysis
Time Frame: 1 hour
CRUDEOIL Support & Resistance Table – 03/04/2024
| Support & Resistance | Level | Explanation |
| Resistance 2 | 86.21 | Daily R2 |
| Resistance 1 | 85.75 | Daily R1 |
| Support 1 | 84.51 | Daily S1 |
| Support 2 | 84.05 | Daily S2 |
CRUDEOIL Indicator Table – 03/04/2024
| Indicator | Signal |
| SMA 20 | Buy |
| SMA 50 | Buy |
| SMA 100 | Buy |
| MACD( 12;26;9) | Buy |
| RSI (14) | Neutral |
| Stochastic ( 9;6;3) | Sell |
CRUDEOIL Indicator / Period Table – 03/04/2024
| Indicator / Period | Day – Buy | Week – Buy | Month – Buy |
| MACD( 12;26;9) | Buy | Buy | Buy |
| RSI (14) | Neutral | Buy | Neutral |
| SMA 20 | Buy | Buy | Buy |
CRUDEOIL 03/04/2024 – Reference Price : 85.15
| BUY | Simple Moving AverageBuy (3)Sell (0)Technical Indicators – OscillatorsBuy (1)Sell (1) |