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Daily Market Analysis 12.07.2022: OIL

Instrument: OIL

Technical Analysis:

Bullish Preference:
Buy position is envisaged if price trades above 105.80 with take profit at 106.22
Bearish Preference:
Sell position is envisaged if price trades  below 104.55 with take profit at 104.15
Fundamentals:
No major fundamental

Crude oil prices washed out towards $94/barrel last week, a floor under the market ever since Russia invaded Ukraine at the end of February. Technical damage has been done, but the fundamentals haven’t changed: supply shortfalls are competing with global recession concerns.  Oil was down on Tuesday morning in Asia as demand concerns spurred as China discovered cases of highly infectious BA.5 omicron sub-variant. Growing fears of a recession and continued sluggish demand in China is pulling oil prices lower, though the current supply-demand balances remain precarious,” Eurasia Group analysts said in a note.

Analysis: SCRUM Team

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