Why Are Oil Prices Not Rising? SocGen Lists 10 Reasons

Although technical indicators point to a short-term upward trend, the headline highlights factors limiting the upside movement in oil prices. The RSI at 66.8 is approaching overbought territory, while the MACD is positive and price action above the SMAs is favorable. However, the 10 reasons listed by SocGen raise doubts about the sustainability of the rally. Therefore, a sideways trend can be expected in the short term.

Although technical indicators point to an upward trend (RSI at 67, MACD positive, price above SMAs), the news headline questions why oil prices are not rising, which may limit upside potential. In the short term, the current bullish momentum could persist, but a sharp rally is not expected due to the cautious sentiment created by the news. The price facing resistance at $94.65 and the RSI approaching overbought territory increase the likelihood of sideways movement. Therefore, it is difficult to determine a clear direction; the market is likely to digest the news and await a new catalyst.

XOM stock manages to stay above its 50-day SMA despite stagnant oil prices. The RSI at 44 is in neutral territory, and the MACD is below the signal line, indicating no clear short-term direction. News headlines emphasize limited upside in oil prices, which could pressure energy sector stocks. However, since technical indicators are not in oversold territory, the downside is expected to be limited. A sideways move or slight correction appears more likely in the near term.

CVX stock is neither overbought nor oversold, with its RSI at 46. The MACD line remains below the signal line, indicating weak short-term momentum. The price is trading below the 20-day moving average (189.03) but holds above the 50-day moving average (186.57). The news headline suggests limited upside in oil prices, which could pressure energy sector stocks. Combined with technical indicators, near-term direction uncertainty prevails.