Crude oil futures have closed at $64.52, marking an increase of $1.22 or 1.93%. The end-of-day rise has pushed the price above the 100-day moving average, which is currently at $64.32. This development suggests a more optimistic outlook.<\/p>\n
However, the price remains below 50% of the range since the April low of $66.36. It is also under the declining 200-day moving average, set at $67.01. Surpassing these levels could lead to a more positive technical assessment for oil prices.<\/p>\n
We are seeing crude oil’s price move back above its 100-day moving average, which suggests a potential shift toward a more positive bias. For this bullish signal to be confirmed, we need to see the price consistently hold above the $64.32 level in the coming trading sessions. This technical foothold is the first step in a potential recovery.<\/p>\n
This move is supported by the latest Energy Information Administration (EIA) data, which showed a larger-than-expected draw in U.S. crude inventories of 4.1 million barrels last week. That report indicates that demand is currently outpacing supply, providing a fundamental reason for prices to rise. We are also watching OPEC+ closely after they reaffirmed their commitment to production cuts through the end of the year.<\/p>\n
Given this cautious optimism, derivative traders could consider strategies like buying bull call spreads. This approach allows us to capitalize on a potential move toward the $67.00 resistance level while defining our maximum risk. The key hurdles to watch are the 50% retracement level at $66.36 and the falling 200-day moving average near $67.01.<\/p>\n
The global demand picture, however, presents a mixed outlook for us. While recent PMI data from China came in slightly above expectations, suggesting stable industrial demand, persistent inflation in Europe is creating concerns about economic slowing. We see this as a balancing act, where supply tightness is currently winning out over demand fears.<\/p>\n
We remember the sharp price swings of 2022 and 2023, so managing risk is critical in this environment. Placing stop-loss orders just below the 100-day moving average would be a prudent way to protect against a false breakout. If the price fails to hold this level, the recent gains could quickly evaporate.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Crude oil rises 1.93%, closing at $64.52, edging above 100-day average but below key levels.<\/p>\n","protected":false},"author":62,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-30880","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/30880","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=30880"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/30880\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=30880"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=30880"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=30880"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}