Crude Oil Bounces As Market Eyes Strategic Reserve Top Up, US Payrolls

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The Federal Reserve didn’t help oil bulls as its inflation-fretting has seen us rate-cut doubts grow

got a lift on Thursday, reportedly on expectations that the United States could buy near current levels to replenish its Strategic Reserve.

Of course, the economic resilience that has prompted the Fed’s caution is hardly in itself bad news for oil demand in the world’s largest economy. But such is the link between credit costs and everything else that oil markets took a dive anyway. It now offers support at $78.55 with a retracement prop at $77.68 lying in wait to catch falls below that mark. Bulls will want to get back above resistance provided by another retracement level at $80.21. This is quite close to the current market. A durable rise above that level will allow those bulls to contemplate taking back this week’s heavy falls, but they’ll need to top psychological resistance at $83.00 to do so.

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 /  🏆 305. in PT
 

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