US Jobs Data Highlights Crude Oil Superiority in Higher WTI Realm
Crude Oil: What’s Happening?
Positive Signs for the Economy
Crude oil prices are on the rise as the US economy shows signs of strength. Recent data from the US Energy Information Agency (IEA) revealed a drop in crude oil stockpiles, indicating increased economic activity. This is good news for the world’s largest economy.
US Job Growth
The American Petroleum Institute (API) also reported a decrease in crude oil reserves, suggesting that the US economy is continuing to grow despite the Federal Reserve’s tightening measures. Additionally, the ADP National Employment Report showed that a significant number of jobs were added in June, surpassing expectations.
As a result of these positive developments, Treasury yields have increased, and the benchmark 10-year bond is trading higher. However, the stock market has experienced some declines, and currencies like the Australian dollar (AUD), Canadian dollar (CAD), and New Zealand dollar (NZD) are struggling. Spot gold prices are also approaching a four-month low.
When looking at the technical analysis of WTI crude oil, it has been trading within a range for over two months. The price has been contained between $66.80 and $75.06. In a broader sense, it has been trading between $63.64 and $83.53 since November of last year.
Support and Resistance Levels
Considering these ranges, previous highs can act as resistance levels, while previous lows can provide support. On the downside, support levels may be found at $67.03, $66.82, $66.80, $64.36, $63.64, or even as low as $62.43, which was the lowest point in November 2021. On the topside, resistance levels could be at $72.72, $73.28, $75.06, $76.92, and $79.18. There is also a cluster of breakpoints and prior peaks in the $82.50 – $83.50 range.
So, keep an eye on crude oil prices as they continue to fluctuate based on economic data and market conditions.