Oil prices dropped over 2% as U.S. crude stockpiles rose, signaling weakened demand. Additionally, concerns about the global economic outlook led to a broader sell-off in equities. Brent crude futures fell by 2.2% to $88.13 a barrel, while U.S. West Texas Intermediate crude futures slid by 2.7% to $83.13 a barrel. These price declines were driven by a combination of rising inventories, reduced demand, and economic uncertainties, highlighting the impact of geopolitical tensions and broader market sentiment on oil markets.
The market's attention has been fluctuating between geopolitical factors, including the conflict in the Middle East, and macroeconomic concerns, such as U.S. Treasury yields nearing 5% and the pace of economic growth. These uncertainties are affecting oil demand and prices, making it a volatile and complex market. Additionally, the article touches on issues related to the energy transition, with companies like Shell cutting jobs in its Low Carbon Solutions business, and Siemens Energy seeking government support for its wind-turbine unit.
On a technical side, the daily graph had formed a Three Black Crows pattern 2 days ago, which is a reliable predictor of continuous down movement, technical indicators as MACD and RSI are also in the sell zone.
If this trend continues, the price might reache levels of 79.64, while as a pivot point might be considered 84.34, from where the price might go to 87.82 levels.
Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carries a high level of risk. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and on such sites. Furthermore, one understands that the company carries zero influence over transactions, markets, and trading signals, therefore, cannot be held liable nor guarantee any profits or losses.
The market's attention has been fluctuating between geopolitical factors, including the conflict in the Middle East, and macroeconomic concerns, such as U.S. Treasury yields nearing 5% and the pace of economic growth. These uncertainties are affecting oil demand and prices, making it a volatile and complex market. Additionally, the article touches on issues related to the energy transition, with companies like Shell cutting jobs in its Low Carbon Solutions business, and Siemens Energy seeking government support for its wind-turbine unit.
On a technical side, the daily graph had formed a Three Black Crows pattern 2 days ago, which is a reliable predictor of continuous down movement, technical indicators as MACD and RSI are also in the sell zone.
If this trend continues, the price might reache levels of 79.64, while as a pivot point might be considered 84.34, from where the price might go to 87.82 levels.
Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carries a high level of risk. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and on such sites. Furthermore, one understands that the company carries zero influence over transactions, markets, and trading signals, therefore, cannot be held liable nor guarantee any profits or losses.