The emergency oil release, amounting to 1 Million Barrels per day from May to end of the year has changed the short term fundamentals into Bearish.
This might push the prices lower as low to $92.
On the other hand, The release may deter producers, including the Organization of the Petroleum Exporting Countries (OPEC) and U.S. shale producers, from accelerating output increases even with oil prices around $100 a barrel.
Investors are also assessing the fundamentals in the oil market amid uncertainties over slowing demand in China, where cities have been locked down due to the latest wave of coronavirus infections, and the loss of supplies from Russia.
This might rebound the price in the mid-term for higher levels.
For now, Our Area of value is between $91-$92. If price rejects the lower levels, we might get to see a significant bullish rally to conquer the higher levels.
This might push the prices lower as low to $92.
On the other hand, The release may deter producers, including the Organization of the Petroleum Exporting Countries (OPEC) and U.S. shale producers, from accelerating output increases even with oil prices around $100 a barrel.
Investors are also assessing the fundamentals in the oil market amid uncertainties over slowing demand in China, where cities have been locked down due to the latest wave of coronavirus infections, and the loss of supplies from Russia.
This might rebound the price in the mid-term for higher levels.
For now, Our Area of value is between $91-$92. If price rejects the lower levels, we might get to see a significant bullish rally to conquer the higher levels.