Crude Oil Jumps Up While Equities Aim Higher For Year End. Can WTI Continue To Climb?

Crude Oil, AUD/USD, ASX 200, Nikkei 225, China – Talking PointsCrude oil prices find support in illiquid markets as US Dollar sidelined.APAC equities were mixed with the ASX 200 the out-performerYear-end holiday markets might have some surprises.Will oi go higher?WTI crude oil continued to climb today as Mexico announced measures to drastically reduce oil exports from next year.The initial plan, announced by Pemex CEO Octavio Romero, is to halve exports in 2022 followed by zero exports in 2023. Mexico currently ship most of their the raw product to the US for refining. The domestic capacity of the Central American state to produce this volume of gasoline and diesel has been questioned by some in the market.Australia’s ASX 200 index made a solid start back from a 4-day weekend with re-balancing and some window dressing seen as the driver for the rally to a 3-month high.Japan’s Nikkei 225 index was down over 1% at one stage and Chinese equities were also lower with tech stocks leading the way after a weak session on the Nasdaq in the US.The Evergrande saga continues to unfold in the background with more bond payments missed this week. There is a 30-day extension for the payment to be made before a default can be declared. Although international ratings agencies have already labelled prior mis-payments as a default.Combined with surging Omicron case numbers in China and globally, sentiment remained subdued. This has the market looking for some more easing measures from the PBOC at some stage.Iron ore prices continued to slide today, but the Australian Dollar, like almost all currencies pairs, was little moved in the Asian session. US Dollar volatility has collapsed.Looking ahead to the US day, there will be wholesale inventories data followed by pending home sales numbers.Crude Oil Technical AnalysisWTI crude made a new high for the month in a recent session, before stalling at the 55-day simple moving average (SMA).This recent high of 76.92 and the 55-day SMA might offer further resistance. Further up, the previous highs of 79.33 and 81.81 may offer resistance.On the downside, support could be provided at the previous lows and pivot points of 74.96, 74.76, 73.34 and 66.12. The 200-day SMA currently at 70.63 is also a potential support level. Chart created in TradingView— Written by Daniel McCarthy, Strategist for DailyFX.comTo contact Daniel, use the comments section below or @DanMcCathyFX on Twitter
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