Oil Surges Beyond $90 Due to Supply Concerns and Positive Economic Signals

market news summary

Industrial output in China grew at a faster pace than expected in August, signalling the positive role recent support measures played in stabilizing the sluggish economic recovery. According to data released by the National Bureau of Statistics on Friday, September 15, industrial production increased by approximately 4.5% in August on a year-on-year basis, compared to a 3.7% increase in July, and surpassing expectations of a 3.9% rise.

In Europe, European stock markets closed higher on Thursday as investors in the region assessed the European Central Bank’s decision to raise interest rates once again. The European Central Bank decided to increase interest rates by 25 basis points, marking the tenth consecutive increase, bringing the main interest rate to 4%, the highest ever.

Dollar Index (USDX)

The dollar index, which measures the currency against major counterparts, declined by 0.11% to 104.93 as expectations grew that the Federal Reserve would maintain interest rates at their current levels next week.

Pivot Point: 105.10

Resistance level	Support level
105.65	104.75
105.95	104.25
106.50	103.90

Spot Gold (XAUUSD)

Gold prices rose by 0.22% to $1,916.80 per ounce, supported by a slight decline in the dollar during the Asian session today.

Pivot Point: $1,908

Resistance level	Support level
1915	1903
1920	1896
1927	1891

Dow Jones Index (DJ30ft – US30)

US indices closed with collective gains yesterday, supported by investor optimism about interest rate stability following better-than-expected economic data.

Retail sales exceeded expectations in August due to rising gasoline prices, while initial claims rose to 220,000.

The Dow Jones index rose by 0.96%, equivalent to 331 points, marking its highest daily gain in 5 weeks, closing above the 34,900 level. Additionally, both the S&P 500 and the Nasdaq indices rose by approximately 0.8% each, achieving their second consecutive daily gains.

Pivot point: 35170

Resistance level	Support level
35430	35025
35580	34765
35840	34615

US Crude (USOUSD)

Oil prices rose yesterday to their highest levels this year, as supply concerns outweighed worries about economic growth weakness and rising US crude inventories.

Brent crude rose by $1.82, or 1.98%, to settle at $93.70 per barrel, after touching $93.89, its highest level since November 2022.

West Texas Intermediate (WTI) crude gained about $1.64, or 1.85%, to reach $90.16 per barrel, closing above $90 for the first time since November.

Pivot point: 90.05

Resistance level	Support level
91.40	89.30
92.15	87.95
93.50	87.20

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