Crude Oil Set to Consolidate After Sharp Run-Up

Crude Oil Set to Consolidate After Sharp Run-Up

Fundamental Forecast for Oil: Neutral

  • Inventory information supports US crude oil though marketplace nears a undiluted area.
  • Further US involvement in Syria might extent any downside, while a monthly OPEC news mid-week might yield some-more marketplace colour.
  • See a DailyFX Economic Calendar and see what live coverage for pivotal risk eventuality impacting FX markets is scheduled for subsequent week on a DailyFX Webinar Calendar.

US wanton oil continues a pull higher, attack a one-month high, as traders fear that supply might be influenced after a new US atmosphere strikes on Syria. But serve upside might infer wily as wanton enters a undiluted trade section between $52 and $55 a barrel.

The upwards channel in wanton stays total as prolonged as wanton closes above $51.20/brl Friday. On a upside, bulls will be looking during a Mar 7 high of $54.08/brl.

Chart: US Crude Oil Daily Timeframe (December 13, 2016 – Apr 7, 2017)

Crude Oil Set to Consolidate After Sharp Run-Up

Chart by IG

The oil marketplace also faces a integrate of critical information releases subsequent week that could pull a marketplace if tensions in Syria ease. The monthly OPEC news is expelled on Wednesday Apr 12, providing traders with a minute research of pivotal developments in universe oil demand, supply and a closely watched oil marketplace balance. The US EIA wanton oil inventories are also expelled on Wednesday, forward of a IEA oil marketplace news on Thursday and a Baker Hughes oil supply count on Friday Apr 14.

— Written by Nick Cawley, Analyst

To hit Nick, email him during Nicholas.cawley@ig.com

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