Oil price continues sideways – which direction is next?
Crude oil is down 0.1% today, extending its consolidation. This minor decline follows a gain of 0.37% on Friday, with the market remaining below the key $65-66 resistance level.
For oil markets specifically, these developments are worth monitoring:
- U.S.-China trade war is dominating investor sentiment in moving oil prices, superseding nuclear talks between the U.S. and Iran and discord within the OPEC+ coalition.
- Several OPEC+ members are expected to suggest accelerating oil output hikes for a second consecutive month when they meet on May 5, adding supply concerns.
- Markets remain highly sensitive to news, with oil trading largely following broader market sentiment.
Conclusion
Crude oil continues to fluctuate and remains below the crucial medium-term $65-66 resistance level.
For now, my short-term outlook is neutral.
I think that no positions are justified from the risk/reward point of view.
Here’s the breakdown:
- Today's minor 0.1% decline extends the recent consolidation.
- U.S.-China trade uncertainty and potential OPEC+ supply increases pose downside risks.
- The ongoing Ukraine peace talks add another layer of geopolitical uncertainty.
- In my opinion, the short-term outlook is neutral.
The full version of today’s analysis - today’s Oil Trading Alert - is bigger than what you read above, and it includes the current Crude Oil futures contract position. I encourage you to subscribe and read the details today (with a single-time 7-day free trial). Oil Trading Alerts are also a part of our Diamond Package that includes Gold Trading Alerts and Stock Trading Alerts.
And if you’re not yet on our free mailing list, I strongly encourage you to join it - you’ll stay up-to-date with our free analyses that will still put you ahead of 99% of investors that don’t have access to this information. Join our free oil newsletter today.
Thank you.
Paul Rejczak,
Stock Trading Strategist