US Oil falls more than 2% despite lower US crude Oil stockpiles.
Oil pushes lower to ignore the drop in API and EIA crude stocks. After the surprisingly report from yesterday's American Petroleum Institute, US Oil could hold its price above $110 US dollars. Today also we had the EIA report. The US Energy Information Administration's confirmed the API inventory reduction report.
From the beginning of the week, geopolitical risks in Ukraine and Libya increased the oil price in line with the rebound in Chinese demand. On the other hand, US officials tried to find a way to push Russia and avoid the Oil shortage in the market by changing the strategy. However, it did not work as well. The US Treasury Secretary, Mrs. Janet Yellen, said that instead of sanctions, the EU could impose tariffs on Russian oil. More than watching what Yellen said, market participants were looking at a nearly 9% fall in Russian crude output in April compared with a month ago. After all the news and changes, until a few hours ago, oil was in a clear uptrend.
The uptrend of the oil market changed, as published economic data again seriously shows a slowdown in economic growth, which directly affects demand. Especially after the comment from Federal Reserve Chairman Jerome Powell on Tuesday that told the FED can increase the interest rates as much as it needs to stifle inflation, which he said threatened the foundation of the economy.
Despite all the falling and increases in a short-term deal, the bigger picture still did not change, and after a short departure from its recent trading range, back there between 94 and 108 US dollars. The overall outlook still did not change, and we can see the range trading with a little bit of bullish tendency. Any up or downtrend will need to prove itself out of this range. However, as I mentioned last week, while the ascending and descending factors do not have much power to overcome each other, we can see the higher lows, which primarily support the bulls than the bears.
