- Oil price rises again and extends the rally from lows in months.
- Comments on possible cut in production and technical factors support the rise.
- Economic data complicate growth outlook.
Oil prices are rising again on Wednesday, accumulating three days higher. The barrel of WTI (trading platforms) reached as high as $95.07, the maximum level in three weeks. It then trimmed gains and pulled back to the $94.00 area.
change of focus
Despite data released on Tuesday, which showed more signs of an economic slowdown in Europe and the US, oil rose significantly, posting the highest daily close since late July. The possibility raised by the Saudi Arabian energy minister of lower production helped the rise, which was completed with a drop in the dollar.
The attention of the financial markets is focusing on what will be the Jackson Hole symposium, where the main central bank officials will speak. On Friday it will be Jerome Powell’s turn.
US oil inventory data will be released later on Wednesday.
The technical outlook for WTI is positive in the short term after breaking out of a multi-week bearish line. A return below $90.50 could change this scenario. To the upside, a confirmation above $95.00 would enable further rally, with resistance then at $95.60, followed by $96.00 and $96.40.
Technical levels
Source: Fx Street
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