During Monday's US trading session, international oil prices rebounded strongly. The main US crude contract surged 2.5% at one point to $62.31 per barrel, while the August Brent crude futures also rose more than 2% to $64.12 per barrel. Two key drivers underlie this rally: OPEC+'s maintenance of a "modest production increase" strategy at its weekend meeting, and Ukraine's surprise attack on a Russian military airfield. The crude oil market is currently in a dual game of "policy and geopolitics": OPEC+ seeks to balance the market with "modest production increases," while Ukraine's raid serves as a reminder that black swans are never far away.
Short-term Outlook:
US oil prices may remain range-bound between $60-$64 per barrel.
However, if the Russia-Ukraine conflict deteriorates or internal rifts within OPEC+ deepen, a new round of violent volatility (sharp rallies or crashes) cannot be ruled out.
Technical Analysis:
Early trading saw oil prices consolidate in a narrow range near $61, reflecting a secondary rhythm.
The MACD indicator is bearishly diverging below the zero axis with strong bearish momentum, suggesting a risk of continued downward movement in crude oil prices during the session.
Trading Strategy:
sell@63.5-64.0
TP:61.6-62.0
Short-term Outlook:
US oil prices may remain range-bound between $60-$64 per barrel.
However, if the Russia-Ukraine conflict deteriorates or internal rifts within OPEC+ deepen, a new round of violent volatility (sharp rallies or crashes) cannot be ruled out.
Technical Analysis:
Early trading saw oil prices consolidate in a narrow range near $61, reflecting a secondary rhythm.
The MACD indicator is bearishly diverging below the zero axis with strong bearish momentum, suggesting a risk of continued downward movement in crude oil prices during the session.
Trading Strategy:
sell@63.5-64.0
TP:61.6-62.0
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.