Oil prices keep rising despite strategic release plans | the trade

Описание: Oil markets remain in sharp focus, as Peter Pan from ACY Securities outlines the key drivers pushing US WTI up 7% to above $93 a barrel and Brent near $97. Pan sees President Trump's announcement of a 172 million-barrel US Strategic Petroleum Reserve release and the IEA’s record 400 million-barrel release as significant but not a complete solution if disruptions in the Strait of Hormuz persist. According to Pan, technicals indicate Brent crude could be a strong ‘buy the dip’ opportunity between $83.5 and $86, supported by Fibonacci retracement and prior price breakouts. Pan notes the potential for oil to reach $100 within a week and possibly $110 within a month if tensions continue.

Turning to gold and currencies, Pan highlights that gold and the US dollar are moving inversely, with gold now moving sideways between $5,100 and $5,200. Should oil prices rise further, gold could temporarily drop towards $5,000, which Pan suggests is a solid buying range. Any further weakness in the US dollar or negative economic data could send gold to new all-time highs above $5,600.

Pan remains cautious on US tech stocks, noting the Nasdaq 100 has been flat for five months and is susceptible to downside if private credit issues escalate. The Aussie dollar is seen holding strong, with opportunities to buy dips around 0.695, backed by expectations of an RBA rate hike.