Despite major crude oil supply cuts, U.S. dollar resurgence and China’s recovery fears curtailed bullish trends.
Short-term Forecast
While the extended supply cuts and the recent U.S. inventory draw provide some bullish sentiments, the evolving economic landscape, especially in China, and possible Russian export boosts due to seasonal refinery maintenance, present a mixed short-term outlook. It remains cautiously bearish until clear signs of sustained global demand emerge.
Price-wise, it’s nestled above the main support zone (from $84.89 to $83.81) and is edging towards the primary resistance area (from $88.68 to $90.10). Based on the data, the market sentiment for Light Crude Oil Futures on the 4-hour chart is predominantly bullish.
Short-term Forecast
While the extended supply cuts and the recent U.S. inventory draw provide some bullish sentiments, the evolving economic landscape, especially in China, and possible Russian export boosts due to seasonal refinery maintenance, present a mixed short-term outlook. It remains cautiously bearish until clear signs of sustained global demand emerge.
Price-wise, it’s nestled above the main support zone (from $84.89 to $83.81) and is edging towards the primary resistance area (from $88.68 to $90.10). Based on the data, the market sentiment for Light Crude Oil Futures on the 4-hour chart is predominantly bullish.
Comment:
while Brent remains bullish, treading above the $90 mark, the market is awash with caution. Key indicators, including reports from stalwarts like the International Energy Agency (IEA) and the Organization of the Petroleum Exporting Countries (OPEC), will likely shape the narrative in the coming days. Notably, the IEA recently trimmed its 2024 oil demand growth forecast, pointing to subdued macroeconomic conditions. In contrast, OPEC’s August dispatch maintained its 2.25 million bpd growth forecast for the same year.
Comment:
Oil prices dip due to China’s economic outlook.
Saudi Arabia and Russia extend supply cuts.
WTI defines a new range; demand concerns persist.
Given the prevailing market conditions and uncertainties surrounding Chinese demand, the short-term outlook for oil prices appears cautiously bullish. The anticipation of reports from key energy organizations and geopolitical dynamics, such as the Venezuela-China interaction, will significantly shape trader sentiment in the days to come.