23 May
Oil price rises on confidence over the debt ceiling as a bullish triangle develops.
- Oil price continues to recover slowly amid growing optimism The US Congress will agree to raise the debt ceiling.
- On the 4-hour chart, a bullish triangle price pattern develops, adding to the evidence that the bearish trend may be changing.
- The release of API inventory data later Tuesday may cause some volatility in the movement of Crude Oil prices.
Tuesday’s oil price trading is a little bit higher, continuing the week’s comeback from the weak opening. The uncertainty around the US debt ceiling causes a lack of volatility in the financial markets. Should there be a default, US demand would drastically decline, which would drive down oil prices. Since history indicates that a last-minute agreement is the norm, optimism following Monday’s negotiations raises prospects.
WTI oil is currently trading in the mid-$72 range, while Brent crude oil is trading in the lower-$76 range. On the 4-hour chart, a bullish right-angled triangle has developed, challenging the general bear trend.
Market movers and news about oil
- Tuesday sees a little increase in oil as US politicians continue their discussions to raise the debt ceiling and prevent a US default.
- After the meetings on Monday, Republican House Leader Kevin McCarthy expressed confidence, saying, “I believe we can still get there.” I have faith that we can succeed. adding that he felt the discussions had been the most fruitful thus far.
- After major economies battled during the G7 summit in Japan, fears about global trade led to a sharp decline in the price of oil at the start of the week.
- China further irritated the US by forbidding shipments of memory chips made by US company Micron due to security concerns.
- Oil prices would be affected by a higher result, which would indicate rising supply, while a lower result would have the opposite effect.
- The US Dollar may be impacted by the S&P Global PMI data at 13:45 GMT as well. If the data exceeds expectations, the US Dollar may strengthen and weigh on Oil prices, and if it is lower, the opposite may be true.
