January 27, 2023

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Oil slips further on the week, tests near-term support levels

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Oil falls by 1.4% on the day to $61.65

Oil H1 21-04
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There aren’t much headlines involving oil so far this week but the risk retreat yesterday is one of the few things influencing price action in the commodity.

Oil tumbled from $64.00 to a low of $61.50 yesterday and is trading thereabouts again, testing the 38.2 retracement level @ $61.78 as well as its 200-hour moving average (blue line) @ $61.68. Break below that region and sellers will seize near-term control.

In the bigger picture, this looks to be a bit of a light pullback in oil after a modest rally in the past two weeks. Key support is still seen closer to $60.00 and then the 12 February low @ $57.43, so there is still some ways from a stronger technical breakout.

There has been talk of OPEC+ skipping its ministerial meeting next week but considering that they have already committed to production quotas over the next few months, there shouldn’t be much to really talk about for the time being.


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