Crude Oil Targets $84 Amid Supply Concerns, Fed: Key Trading Levels to Watch
investing.comAfter climbing 4% last week, crude oil will be looking to extend those gains as we start a busy week.
We already had mixed-bag data from China overnight, revealing relatively weak consumer and real estate numbers.
However, the unexpectedly robust investment and industrial data suggest a potential change in growth drivers for 2024 ahead of a potential stimulus rollout.
The stronger industrial data helped to keep hopes over a stronger demand recovery for commodities alive, sending crude prices modestly higher during Asian hours.
The rest of Monday’s session is relatively quiet in terms of macro events but expect to see lots of volatility as we head deeper in the week.
In the upcoming days, the economic agenda brims with significant central bank gatherings and key economic indicators from various countries including Australia, China, the UK, the Eurozone, the US, and Canada.
Expect increased market volatility across asset classes. Major central banks scheduled for announcements include the Bank of Japan and Reserve Bank of Australia on Tuesday, followed by the US Federal Reserve on Wednesday, and concluding with the Swiss National Bank and Bank of England on Thursday.
Notably for oil traders, global manufacturing PMI data will take center stage on Thursday among the upcoming economic reports.
For crude to sustain its recent gains, we will need to see stronger PMI data on Thursday to justify the recent bullish demand forecasts from the International Energy Agency (IEA) and oil’s advance.
A weaker US dollar will probably also help the cause, although the greenback has made a comeback in recent days with FX investors wary of the Fed being potentially more hawkish in its assessment of inflation trends at its upcoming FOMC
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