Is This Commodity The Next GameStop?Is This Commodity The Next GameStop?
Retail investors maintain bullish outlook on gold, but Wall Street analysts expect continued downtrendRetail investors maintain bullish outlook on gold, but Wall Street analysts expect continued downtrend

US crude futures settle at $77.17. That’s up $1.43 or 1.89% on the day.

For the trading week, oil prices are trading up around 2.07%

The high for the day reached $77.69. The low price reached $75.36. Catalysts include:

  • Concerns over global growth took precedence in the market, overshadowing geopolitical risks in the Middle East.
  • Iraq’s oil minister reiterated the country’s commitment to the OPEC+ agreement on production levels but noted that increased oil exports by some OPEC members are considered “natural.”
  • Brazil’s rising oil production, with Petrobras announcing a new USD 100 billion capex 5-year plan, remained a focal point.
  • Ukraine’s Energy Minister suggested potential retaliatory attacks on Russian energy infrastructure if Russia intensifies targeting Ukraine’s electric system during the winter.

Production in the US remains near all-time highs which is helping to increase supply. Slower growth in China is a negative for demand.

A positive would be the US does need to increase its strategic petroleum reserves at some point. That may help to put a floor on the price of oil. Recall that in May, the price reached levels near $64, but little was added to the reserves. Increased growth from China would also give the price a boost.

Technically the prices closed the week below its 200-day moving average at $78.11 (see green line in the chart below). The price also moved away from its higher 100-day moving average (blue line in the chart below) currently comes in at $81.94. It would take a move above each to increase the bullish bias from a technical perspective.

Crude oil is trading below its 200 day moving average

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