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Tuesday, 07 February 2023
Imbalances in Crude Oil Supply and Demand Remain

Imbalances in Crude Oil Supply and Demand Remain

2022-10-29

On Monday morning, crude oil prices remained high as investors reacted to growing concerns over supply and demand mismatches. Brent is currently trading at $107, while WTI is currently trading at $103. These prices are much lower than this year’s highs. The International Energy Agency (IEA) stated last week that supply will fall dramatically in April as oil merchants avoid Russian petroleum to escape penalties. It is estimated that approximately 3 million barrels per day will be removed from the market. The current negotiations in Iran and Venezuela have compounded the pricing action. On Monday morning, crude oil prices remained high as investors reacted to growing concerns over supply and demand mismatches. Brent is currently trading at $107, while WTI is currently trading at $103. These prices are much lower than this year’s highs. The International Energy Agency (IEA) stated last week that supply will fall dramatically in April as oil merchants avoid Russian petroleum to escape penalties. It is estimated that approximately 3 million barrels per day will be removed from the market. The current negotiations in Iran and Venezuela have compounded the pricing action. On Monday, the economic calendar will be quiet. As a result, investors will continue to pay attention to fresh developments in the Ukraine conflict. Now that its military offensive has stalled, Russia is anticipated to continue shelling cities. Investors will also consider the Federal Reserve’s interest rate decision. On Wednesday of last week, the bank voted to raise interest rates. As a result, a speech by Jerome Powell will almost certainly affect equities and currencies.

The EURJPY pair has been in a strong upward trend in recent days as investors react to the Bank of Japan and European Central Bank’s recent moves. The pair reached a high of 131.60, a substantial increase from the month’s low of 124.40. The pair moved above the 25-day and 50-day moving averages on the four-hour chart. It’s also broken through the 78.6% retracement level. As a result, the pair is expected to continue rising in the near future.

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On Monday morning, the EURUSD pair was little changed. It is currently trading at 1.1050, down from last week’s high of 1.1140. It’s just above the yellow symmetrical triangle pattern’s upper side. It’s just above the 25-day moving average and just below the Fibonacci retracement level of 38.6%. The pair is likely to continue to decline as bears go for the triangle’s lower side.

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