Oil Markets Eying Weekly Gains Following PMI Data

Crude Oil prices rebounded after a volatile Friday, driven by a surge in the US dollar and positive economic indicators from the United States. The US Dollar Index hit a two-year high, benefiting from the weaker Eurozone economy and strong US economic data.

The geopolitical tensions between Russia and Ukraine continue to fuel uncertainty in the oil market. Russia’s expansion of its target list to include a Polish military base has further escalated the conflict. While OPEC+ is expected to delay plans to increase oil production, the market remains focused on the evolving geopolitical situation and its potential impact on global oil supply.

Technical Analysis

Crude Oil prices are poised to close the week with a significant gain, driven by geopolitical tensions and a strong US dollar. However, analysts caution that the recent price surge may be a short-term reaction to heightened tensions and could be followed by a potential pullback.

Key Technical Levels:

• Resistance: 55-day SMA ($70.13), 100-day SMA ($72.77), 200-day SMA ($76.45)
• Support: $67.12, $64.75, $64.38

Traders should monitor the geopolitical developments between Russia and Ukraine closely, as any escalation could lead to further price volatility. Additionally, the upcoming OPEC+ meeting and the weekly Baker Hughes US Oil Rig Count will be key factors influencing the oil market in the near term.