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Technical Analysis: USOIL

23.11.2022

USOIL increased by more than 1%


On Tuesday, USOIL increased by more than 2% to the highest since US$82.4 per barrel. It finally increased by 1.06% as OPEC+ insisted in cutting oil production and API crude oil inventories decreased.


Saudi Arabia said OPEC+ would cut oil production if necessary


Saudi Arabia’s energy minister said on Monday that OPEC+ insisted on cutting oil production, and denied the report that OPEC+ is considering reducing oil production, adding that more measures will be adopted to balance the market if necessary.


Last week, API crude oil inventories decreased by 4,800 thousand barrels


Based on the data released by API, during the week ending on 18th November, crude oil inventories decreased by around 4,800 thousand barrels, gasoline inventories declined by around 450 thousand barrels, and distillate inventories increased by 1,100 thousand barrels.


The market trend is bearish in the short term


On the chart of the day, USOIL increased steadily from a low level. It is expected to rebound further in the short term. In terms of technical indicators, KDJ went upwards after golden cross occurred at a low level, showing that the market trend is bullish. Investors should focus on whether USOIL will break through the support at 77.7. It will rise further is it is steady above 77.7.


On the 4-hour chart, USOIL rebounded and was prone to fluctuation. The market trend is bullish. In terms of technical indicators, MACD went upwards after golden cross occurred at the low level, showing the market trend is bullish. Investors should focus on whether USOIL will break through the resistance at 84.0.


Key resistance: 84.0, 86.0

Key support: 77.7, 75.3

 

Generally speaking, oil price increased as OPEC+ insisted on cutting production and API crude oil inventories declined. Investors should focus on EIA crude oil inventories during the day. Oil price will rise further if EIA crude oil inventories fall further.

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