After rising for two consecutive trading days, US crude oil prices did not change much on Wednesday (December 8). The news that the symptoms of the new crown virus may be mild and that oil demand has not been severely impacted by the new crown virus variant alleviated market concerns. And the Iranian nuclear negotiations that power oil prices; however, the US Energy Information Administration lowered its crude oil price expectations until the end of 2022.
In general, the Omicron mutant strain has been alleviated, which has promoted the rise of oil prices. During the Iranian nuclear talks, the United States increased sanctions against Iran, and the downturn in relations between the two sides further provided impetus for rising oil prices. In the short term, the Iranian nuclear relationship may become a major factor affecting oil price trends.
Crude oil trend analysis: From a technical point of view, oil prices rose sharply in the first two trading days of this week, but yesterday’s rise has eased, and further rises are unlikely. The negative situation of short-term bullishness has been eased. The MACD indicator is expected to cross the gold price and the RSI will exceed 50. However, it should not be excessively pursued. The worry of oversupply of fundamentals is intensifying, and Omega’s mild positive symptoms have been priced.
Need to pay attention to EIA’s weekly crude oil inventory data. The data has a high probability of being positive. Investors are advised to keep cautiously looking at oil prices. The initial resistance above was concentrated at the 50% retracement level of 73.92, followed by the October 7 low of 74.96, and the 76.63 retracement level of 61.8%. The initial support below focuses on the psychological level of 70.00, followed by the high of 67.98 on March 8 and the low of 65.01 on July 20. In general, today’s short-term operation thinking suggests that the callback is mainly low and the main one, and the rebound is supplemented by the high altitude.
Post time: Dec-10-2021