Crude oil rose about 0.5% and it traded around $87 in the early European trading session. The market still finds technical support around the decade’s upper value extreme to work its way back into the Year’s developing value area.

The daily may close with a swing failure with absorption to lead the market to higher prices. The market is pressured by aggressive monetary tightening and China’s Covid-19 curbs. The higher government yield of currently 3.3% and the rising dollar are additionally bearish factors for commodities around the globe.

The European Central Bank is expected to hike interest rates by about 75bps despite the energy crisis as additional emergency liquidity from European governments might be supportive and inflationary.

OPEC+ earlier this week unexpectedly agreed to cut output by 100,000 barrels a day which was supportive for the session. Saudi Arabia signaled additional possible cuts in case of rises in supply, for instance, from Iran.

Meanwhile, Russia won’t supply oil if price caps on the exports of the country are introduced. Earlier in the comments, the group of seven agreed on price caps on Russian oil.

The market bounced back from the early overnight morning session, testing the mentioned month's and week's developing VWAP as resistance. Buyers may target the upper-value extreme around $89 as both DVAH’s are confluent for potential selling activity.

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