Some Respite for Crude Oil within Bear Trend

By Pete Southern in Gold and Oil News | May 24, 2023 5:10 | Tags: , , ,

The price of oil was experiencing an upward trend this Tuesday, bouncing back from a weak beginning to the week. The revival was driven by robust macroeconomic indicators reported in the USA, combined with a hope on debt-ceiling discussions. Moreover, a cautionary message from the Saudi energy minister to investors has also added fuel to this surge, as it hinted at potential additional reductions in OPEC production.

Many sources referencing American Petroleum Institute statistics suggest that crude stocks dipped by nearly 6.8 million barrels for the week concluding on May 19. Similarly, there was a fall of roughly 6.4 million in gasoline reserves.

Assuming that the Energy Information Administration (EIA), which release data on Wednesday, validates these numbers, it would mean a continuous downward trend for U.S. gasoline stocks over three successive weeks.

Crude Oil is entrenched in a protracted decline, consistently posting new lows. Keeping in line with the famous saying ‘the trend is your friend’, this suggests sticking to the short theory.

However, despite the prevailing downward trend, indicators are beginning to suggest a potential end to this bearish phase and a possible shift towards a bullish one.

Regrettably for those expecting a market rise, the sellers have come back in full force. Despite the OPEC production cuts being implemented this month, the speculative stance in crude oil has reverted back to its bearish peak in March.

Pete Southern About Pete Southern
Pete Southern is an active trader, chartist and writer for market blogs. He is currently technical analysis contributor and admin at this here blog.

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