Gold Silver Reports –✅ Crude Oil Buy on Dips Target 3980—4020 Uptrend Remains Intact — Crude Oil is trading higher today at 3916, up 30 points or 0.77% supported by stronger data from the US whereas Natural Gas is gaining nearly three percent to trade at 181.80 currently.
Crude Oil Buy on Dips Target 3980—4020
Crude Oil gained further strength after the Baker Hughes report showed that US drillers cut 5 rigs for the week ending January 5, bringing the active rig count to 742. Rig Counts are considered as an early indicator of future supply as shale producers tend to hedge their produce before shifting to boost up production in the short term.
Natural Gas is Expected to Trend higher to test previous support turned resistance key at 187 while support is seen at 179-177 this week.
The global oil market has contracted significantly since mid-2017 supported by coordinated cuts from OPEC and Russia in a bid to reduce the oversupply and support prices in the medium-long term.
While the efforts have seen the massive supply overhang reduce in the physical market, increasing supply and exports from the US have been a constant threat to their efforts.
Technically, oil prices are already trading above resistance multi-year highs at 61.81 and are likely to extend gains to 64-65 in the immediate term whereas, on the downside, a break below support at 60.30 could see prices enter into a significant corrective mode in the short term. – Neal Bhai Reports
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