Learn To Trade Forex • Best Forex Trading Course • AsiaForexMentor

US Crude Oil Prices Eye Inventories and OPEC Decisions

Written by:

Ezekiel Chew

Last updated on:

May 30, 2024

Oil Prices Retrace Gains

Crude oil prices dipped slightly in Europe on Thursday, giving back some gains made earlier in the week. These gains were driven by hopes that OPEC and its allies will maintain current, voluntary production cuts at their policy meeting on Sunday. The impending start of the US summer driving season has also boosted expectations for increased gasoline demand.

Figures from the American Petroleum Institute showed that crude stockpiles were down by 6.59 million barrels in the week ending May 24. The market's focus now shifts to the Energy Information Administration’s inventory snapshot, due later on Thursday.

Middle East Tensions and Oil Prices

Israel’s strikes on the Palestinian city of Rafah have kept Middle East conflict in the spotlight, with the US West Texas Intermediate oil benchmark and the global Brent market both up by more than 1% this week.

Despite solid fundamental support, the energy market remains uncertain about when US interest rates might start to fall and how many cuts could follow. While economic resilience keeping rates high isn’t necessarily bad for oil demand, oil bulls prefer when central banks are in stimulus mode.

Futures markets currently predict that US interest rates will start falling in September, with European rates potentially coming down sooner. However, these forecasts depend heavily on inflation data, making upcoming numbers critical for all markets. The next major release is the US Personal Income and Expenditure series on Friday. After that, all eyes will turn to OPEC.

WTI Crude Daily Chart via TradingView as of May 30, 2024 (Source: DailyFX)

Price Movements and Trading Range

After breaking below their uptrend channel from mid-December at the start of May, oil prices have largely traded sideways within a narrow range of $80.18 to $76.23 per barrel, with the latter marking a two-month low. These levels have been tested infrequently, and the usual trading range has been even narrower.

This week, bulls tried to push past the range top on Tuesday but failed. The month is likely to close with the established band still in place, reflecting the fundamental uncertainty over demand and monetary prospects.

The market is now hovering around support from its long-term downtrend line from June 22, which is at $79.35, with resistance at the retracement level of $80.68.

About Ezekiel Chew​

Ezekiel Chew, founder and head of training at Asia Forex Mentor, is a renowned forex expert, frequently invited to speak at major industry events. Known for his deep market insights, Ezekiel is one of the top traders committed to supporting the trading community. Making six figures per trade, he also trains traders working in banks, fund management, and prop trading firms.

Maximize Your Crypto Profit: Essential Strategies for Investors

Ever dreamed of turning a small crypto investment into something much bigger? Your starting investment, no matter how modest, can grow significantly with the right strategies and careful planning. In the exciting world of digital money, many people are making real gains. But simply buying a coin and hoping for

Read More

IMF: Trade Wars Harder on Developing Nations Than COVID

Here’s a surprising thought from the world’s top financial minds: Managing the economic fallout from trade wars might be a bigger headache for central banks in developing countries than dealing with the COVID pandemic was. That’s according to Gita Gopinath, a top official at the International Monetary Fund (IMF), speaking

Read More

Income Generation with Crypto Options: Strategies for Passive Returns

Options trading in the crypto market offers a fascinating avenue for passive returns, moving beyond traditional spot trading. While it involves unique risks, understanding crypto options can unlock powerful strategies for income generation on your digital assets. Crypto options are a specific type of derivative within the broader landscape of

Read More

US Crude Oil Prices Eye Inventories and OPEC Decisions

Written by:

Updated:

May 30, 2024

Oil Prices Retrace Gains

Crude oil prices dipped slightly in Europe on Thursday, giving back some gains made earlier in the week. These gains were driven by hopes that OPEC and its allies will maintain current, voluntary production cuts at their policy meeting on Sunday. The impending start of the US summer driving season has also boosted expectations for increased gasoline demand. Figures from the American Petroleum Institute showed that crude stockpiles were down by 6.59 million barrels in the week ending May 24. The market's focus now shifts to the Energy Information Administration’s inventory snapshot, due later on Thursday.

Middle East Tensions and Oil Prices

Israel’s strikes on the Palestinian city of Rafah have kept Middle East conflict in the spotlight, with the US West Texas Intermediate oil benchmark and the global Brent market both up by more than 1% this week. Despite solid fundamental support, the energy market remains uncertain about when US interest rates might start to fall and how many cuts could follow. While economic resilience keeping rates high isn’t necessarily bad for oil demand, oil bulls prefer when central banks are in stimulus mode. Futures markets currently predict that US interest rates will start falling in September, with European rates potentially coming down sooner. However, these forecasts depend heavily on inflation data, making upcoming numbers critical for all markets. The next major release is the US Personal Income and Expenditure series on Friday. After that, all eyes will turn to OPEC.
WTI Crude Daily Chart via TradingView as of May 30, 2024 (Source: DailyFX)

Price Movements and Trading Range

After breaking below their uptrend channel from mid-December at the start of May, oil prices have largely traded sideways within a narrow range of $80.18 to $76.23 per barrel, with the latter marking a two-month low. These levels have been tested infrequently, and the usual trading range has been even narrower. This week, bulls tried to push past the range top on Tuesday but failed. The month is likely to close with the established band still in place, reflecting the fundamental uncertainty over demand and monetary prospects. The market is now hovering around support from its long-term downtrend line from June 22, which is at $79.35, with resistance at the retracement level of $80.68.
ezekiel chew asiaforexmentor

About Ezekiel Chew

Ezekiel Chew, founder and head of training at Asia Forex Mentor, is a renowned forex expert, frequently invited to speak at major industry events. Known for his deep market insights, Ezekiel is one of the top traders committed to supporting the trading community. Making six figures per trade, he also trains traders working in banks, fund management, and prop trading firms.

RELATED ARTICLES











I consent to receiving emails and/or text message reminders for this event.

REGISTER FOR THE MASTERCLASS!

I consent to receiving emails and/or text message reminders for this event.

REGISTER FOR THE MASTERCLASS!


I consent to receiving emails and/or text message reminders for this event.

REGISTER FOR THE MASTERCLASS!