Oil Prices Rally from a Six-Week Nadir

Oil prices increased early on Thursday, recovering from a six-week low after a significant 3.6% fall the previous day, which was the lowest point since mid-March. This drop was attributed to an unexpected surge in U.S. stockpiles, indicating softer demand than anticipated.

At the same time, market observers have pointed out that the Federal Reserve has kept interest rates steady, diminishing earlier expectations for a rate cut. PVM Oil Associates commented, "The reduction in borrowing costs may not occur as soon or as quickly as previously thought. It is similar to peak oil demand—consistently anticipated yet never realized."

Technically:
The price has stabilized within the bearish zone, having already breached the pivotal range between 80.73 and 82.24. This suggests a continuation of the bearish trend, with potential targets at 77.14 and 75.35. A further break below 75.35 could lead the price down to 69.78.

Conversely, if the price stabilizes above 82.24, it may indicate a bullish trend, potentially reaching up to 86.86.

Pivot line: 80.73
Support lines: 77.14, 75.35, 69.78
Resistance lines: 82.24, 86.86, 89.08

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