Oil jumps by 1% as markets foresee demand pickup after US Jobs Report
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Oil prices are daring to advance a touch this Friday after the release of the most recent US Jobs Report. Although the Nonfarm Payroll number was roughly within the benchmark of estimates, printing 199,000 above 183,000 forecasted. It is the unemployment rate decline from 3.9% to 3.7% which is taking away all the attention, and which commodity traders now see as a possible pick up in demand for energy in the coming quarter.
Meanwhile, the US Dollar (USD) jumps and breaks back above 104. It goes without saying of course that the stronger US Dollar is a result of markets paring back bets on quick and swift cuts from the US Federal Reserve. With still such a tight and growing job market, the Fed is at ease and keep rates elevated for longer as needed to get inflation back to 2%.
Crude Oil (WTI) trades at $71.16 per barrel and Brent Oil trades at $75.85 per barrel at the time of writing.
Oil Technical Analysis: Up next
Oil prices are facing issues, image issues to be precise. Traders are placing further bearish bets on Oil prices after OPEC+ was unable to put firm measures in place that could support the Oil prices and rather move the needle upwards instead of downwards. As long as OPEC+ can not make a united front, more downside is the only outcome with arch nemesis, the US, dumping millions of barrels per day in an already flooded Oil market.
On the upside, $80.00 is the resistance to watch out for. Should crude be able to jump above that again, look for $84.00 (purple line) as the next level to see some selling pressure or profit taking. Should Oil prices be able to consolidate above there, the topside for this fall near $93.00 could come back into play.
On the downside, the soft floor near $74.00 got broken and is gone for now. For now, $70.00 is trying to salvage the situation, though it has been breached already on Thursday and Wednesday. Watch out for $67.00, which aligns with a triple bottom from June, as the next support level to trade at.
US WTI Crude Oil: Daily Chart
