Fed Ready to Cut Interest Rates, Oil Following?
Brent oil prices are still moving in a relatively strong area as the market focuses on supply risks and expectations of interest rate cuts. On the supply side, the market remains wary of geopolitical tensions in several major producing regions and the production policies of OPEC+ countries. As long as the market perceives potential tightness in supply, or at least not abundance, oil prices tend to be supported as traders worry about sudden supply disruptions.
On the other hand, from a demand perspective, expectations that the Fed and other central banks will begin lowering interest rates have slightly improved the global economic outlook. Lower interest rates typically support economic activity and energy consumption in the medium term, providing an additional reason for oil prices to remain resilient. However, concerns about an economic slowdown in several major economies continue to limit gains, so oil prices today tend to fluctuate, but are still supported by positive sentiment from monetary policy and supply risks.
The oil price at the time of this analysis is $63.10
- Buy if the price moves within the $63.20 range
- Sell if the price moves within the $63.00 range
Resistance 2: $63.40
Resistance 1: $63.30
Support 1: $62.90
Support 2: $62.80
Disclaimer
This article is analytical in nature and is not a definitive reference. Please consider fundamental and technical developments in trading before making any investment decisions.
Source: Newsmaker.id
