In the oil market (the Brent oil index), Goldman Sachs and the US Energy Information Administration (EIA) have reportedly increased their estimates of industrial oil demand for next year. In addition, with the onset of the cold season, fuel demand levels in many regions of the world it’s increasing. These factors have caused the oil price to break the significant resistance of $ 77.5 per barrel and reach the highest level since October 2018.
Technically, the price has reached the critical level of $ 80 per barrel, and the price reaction to this level will be decisive. There is a possibility of short-term corrective movements in this price level, but the first possibility will continue to be upward in the medium term. However, the price reaction to the critical $ 80 level should be monitored.
In the gold market, demand for the US dollar has risen, following the results of last week’s FOMC meeting and Jerome Powell’s speech yesterday that inflationary conditions have been met to reduce bond-buying programs as well as expansionary policies. And has reduced the price of gold in international markets.
Technically, the price has reached the support level of $ 1740, and the first possibility is to cross this price level and continue the downward trend in the medium term. If the price crosses this level, the following support levels will be $ 1718 and $ 1700.
