As attention turns to the US debt ceiling talks, oil prices decline.
After rising in the previous session on hopes that U.S. gasoline demand would increase, oil prices declined on Thursday as traders cautiously looked for signs of progress in negotiations to raise the country’s debt ceiling.
At 0841 GMT, the price of Brent Crude futures fell 37 cents, or 0.5%, to $76.59 a barrel. West Texas Intermediate crude for the United States fell 34 cents, or 0.5%, to $72.49 a barrel.
The main crude benchmarks ended the day more than $2 higher on Wednesday thanks to optimism surrounding negotiations over the U.S. debt ceiling, a rapid decline in petrol stocks because of demand rising to the highest levels since 2021, and these factors.
Oil became more expensive for owners of other currencies on Thursday as the U.S. dollar remained close to a seven-week high.
On Wednesday, President Joe Biden and top Republican in Congress Kevin McCarthy reaffirmed their commitment to working quickly to increase the federal government’s $31.4 trillion debt ceiling and avert an unthinkable economic collapse.
Before the government runs out of money to pay its debts, which may happen as soon as June 1, a debt solution must be agreed and approved by both chambers of Congress.
BRENT CRUDE OIL TECHNICAL ANALYSIS DAILY CHART:
Brent Crude Oil has currently started trading in up channel.
Brent Crude Oil is currently trading above 5&20 SMA.
RSI is in buying zone which suggests bullishness and Stochastic is suggesting up trend.
Brent Crude Oil resistance is at 77.32 & its immediate support level is 75.87
HOW TO TRADE BRENT CRUDE OIL
After trading in a downward trend and sliding lower, Brent Crude Oil is attempting to reverse its trend and retreat upward. It is currently in an important resistance zone; if this zone is broken, upside momentum is expected.