Oil Prices Stays Ascendant as Eyes Turn to American Consumer Price Index

9 May 2023, Tuesday
Oil Prices Stays Ascendant as Eyes Turn to American Consumer Price Index

Oil Prices Steady as Markets Await Reports


Overview – Oil Prices


Oil prices have stabilized just below $73 per barrel after a recent sell-off. The American Petroleum Institute will release its weekly statistical bulletin, and the monthly OPEC+ oil market report is due later this week. The broader market is focused on the US CPI report on Wednesday. Gold prices remain above $2,025 per ounce after the Fed’s recent hike. Treasury yields have eased, and the US dollar is stable. Wall Street finished barely moved, and APAC equity markets are mixed.


China’s Trade Balance


China’s trade balance for April was much stronger than anticipated at $90.2 billion. However, imports slumped, raising concerns about the prospects of a recovery for the world’s second-largest economy. China also announced a crackdown on foreign companies that it alleges have been spying.


Australian Federal Government Budget


The Australian Federal Government budget will be delivered, where a surplus is anticipated for the first time in 15 years.


WTI Crude Oil Technical Analysis


WTI crude oil overcame breakpoint resistance in the 72.25 – 72.45 area overnight and that zone might now provide support. Further support might be at the previous lows of 66.82, 66.12, 64.36, 63.64 and 62.43. On the topside, the nearby breakpoint at 73.93 may offer support ahead of a series of simple moving averages (SMA) in the 75.54 – 76.63 area. If those SMAs are vanquished, it could indicate that bearish momentum might be retreating.