Daily Analysis UKOIL 26 Apr 2023

Oil prices have rebounded slightly after a sharp drop that erased most of the gains from Saudi-led production cuts. Brent crude oil has gained 0.5% to reach $81 per barrel, following a 2.4% fall on Tuesday. Although concerns about the health of the U.S. economy have weighed on oil prices, a stronger-than-expected drop in U.S. crude inventories, as reported by the API, has helped to prevent further declines. Crude oil stockpiles in the U.S. have been decreasing since mid-March as refineries have ramped up production ahead of the summer demand period. This has resulted in a backwardation in WTI futures prices, reflecting higher demand from refineries. However, economic concerns and expectations of further interest rate hikes that could limit fuel demand growth are still weighing on the market.

Corrected: From a technical standpoint, the double bottom pattern observed on the Brent crude oil price chart could suggest that the commodity has reached its bottom and is looking for a new trend to make a rebound. After filling the price gap, it may move towards new higher highs, potentially targeting the 83.00 level.

Support:80.80 – 79.00 – 77.00        Resistance: 83.60 – 85.00 – 86.40