Crude oil futures have found new lows for this month with the backdrop of a stronger dollar and geopolitical concerns in oil-rich Middle East hotspots. Crude oil futures are down over $1.50 per barrel at New York’s Mercantile Exchange (as of this writing).
The US dollar is reported to have helped this crude oil move lower when it accelerated to the upside and reinforcing a new uptrend. Elsewhere, traders may be factoring-in the possibility of sanctions being lifted from Iran because if this should happen this summer (as discussed), then more oil will be added to the world glut of supply.
“It looks as if the upward steam from the March low in the crude oil (futures) market is subsiding. Eventually the fundamental picture is rightfully reflected in prices,” said Jeff Evans, Vice-President of the Managed Accounts Division for RMB Group in Chicago, regarding the fundamental assessment of the crude oil futures market. Evans added, “Traders are also standing-by for tomorrow’s domestic inventory report for further clarification.”
Crude oil futures are at a cross-road in its current uptrend. If tomorrow can manage to break today’s low, this can possibly change the technical trend to “down” in my work.
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