Oil Prices Surge Ahead of Fed’s Interest Rate Release
14 Jun 2023
Oil prices surge as investors await the Fed’s interest rate release.
Following upbeat predictions from OPEC and the International Energy Agency (IEA) regarding the rise of global oil demand, oil prices increased on Wednesday as traders anticipated the outcome of the U.S. Federal Reserve’s June meeting.
By 0916 GMT, Brent crude futures were up 76 cents, or 1%, at $75.05 per barrel. At $70.05, West Texas Intermediate (WTI) crude for the United States was up 63 cents or 0.9%.
The previous day, both benchmarks increased by more than 3% on expectations that fuel demand would increase as a result of China’s central bank lowering its short-term lending rate.
The IEA, on the other hand, raised its prediction for this year’s growth in oil demand by 200,000 barrels per day (bpd), to 2.4 million bpd, bringing the total to 102.3 million bpd.
The organization predicts that economic headwinds would lower growth to 860,000 bpd in 2019 and that the rising use of electric vehicles will contribute to a reduction of that growth to 400,000 bpd in 2028, resulting in a total demand of 105.7 million bpd.
The Organisation of the Petroleum Exporting Countries (OPEC) estimate of the growth in global oil consumption in 2023 is slightly higher than the IEA’s estimate.
Contrary to analysts’ average prediction of a 500,000-barrel reduction in the week ended June 9, U.S. crude oil stocks increased by nearly 1 million barrels, according to market sources quoting American Petroleum Institute numbers.
BRENT CRUDE OIL TECHNICAL ANALYSIS DAILY CHART:
- Brent Crude Oil is trading in the down channel.
- Brent Crude Oil currently trading below 20&50 SMA.
- RSI is in buying zone which suggests bullishness and Stochastic is suggesting a downtrend.
- Brent Crude Oil resistance is at 75.03 & its immediate support level is 73.81
HOW TO TRADE BRENT CRUDE OIL
Following a significant decline, Brent crude oil traded in a range for several days. And as of right now, the price has begun to go upward after finding support at its previous support level. Price has broken through the previous day’s high and is currently trading at a key resistance level; if this level is broken, an upside is expected.