- English
- عربي
Brent & WTI Crude Face Key Test – Will Multi-Year Support Levels Hold?
A Heavy Technical Set-up
Traders remain vigilant of further tariff-related headlines, as they do to the incoming US data and the DoE weekly crude inventory report – for now, the SpotCrude price holds rallies below the 8-day EMA, which has defined the trend lower since reversing off $81 on 15 January. With the SpotCrude price within proximity of the multi-year range lows of $65.52, we find ourselves at very meaningful support levels, where should this floor pricing give way, the prospect of further technical and stop loss-related selling would naturally increase.
The Signal from the Crude Market is Far from Positive
A lower crude price would be seen as a positive in many regards, but in this case, the message we hearing that has driven the move lower in crude is far from positive.
While the recent OPEC+ announcement that the group will look to pump out more barrels from April was a surprise and has helped to contain the upside, it’s the message that the crude market is portraying on expected future demand that is more concerning - with confusion from US trade policy leading to reduced visibility for US and global corporates, while increasing concerns of moderating US economic activity increase the probability of reduced demand and the risk of lower levels in crude remains elevated- and its why a break of the multi-year lows should be on the radar.
The material provided here has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Whilst it is not subject to any prohibition on dealing ahead of the dissemination of investment research we will not seek to take any advantage before providing it to our clients.
Pepperstone doesn’t represent that the material provided here is accurate, current or complete, and therefore shouldn’t be relied upon as such. The information, whether from a third party or not, isn’t to be considered as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product or instrument; or to participate in any particular trading strategy. It does not take into account readers’ financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of Pepperstone, reproduction or redistribution of this information isn’t permitted.