Trading position (short-term; my opinion; levels for crude oil’s continuous futures contract): Those entering the market now can do so by holding long positions with entry at $63-63.5, with $59.7 as a stop-loss and $68.20 as the initial price target.
Oil prices pulled back slightly due to the addition of Iranian oil to global supply, even though they’ve been rising recently.
Oil Market: Key Updates
- Iran-US discussion is entering its final stage. Oil prices have therefore dropped slightly, as investors expect a successful outcome of the deal.
- Gasoline demand before Memorial Day weekend is ramping, rising by 10.8% in the last 7 days.
- President Biden will propose a $6 trillion budget that would take the U.S. to its highest sustained levels of federal spending since World War II.
Rising demand, increasing investment in oil and limited supply are pointing to a strong bullish oil market, at least in the medium term.
Note: Our trading positions remain the same.
Thank you.
Nishant Jain, MBA, CPSM
Oil Trading Strategist