Asset Watch
Tuesday, May 9, 2023
So, while crude oil has declined by nearly 16% over the last three weeks, are brighter days ahead?
On top of the fundamental strength, the technicals are also constructive. Crude bounced after dipping below its 200-week moving average and closed the week above the key level. The grey arrows show how the 200-week MA acted as support during the March sell-off, also aiding the bulls in June, August and October 2019. As a result, a technical floor is present near $67.
As warmer weather approaches, travel demand and increased gasoline usage could paint a rosier demand picture in the months ahead.
Will crude make a lasting comeback, or is a breakdown below the 200-week MA up next?