After published this week quite 'bullish' OPEC+ report (expecting almost flat YoY global oil demand) and despite hurricane Francine hitting US East, Brent Crude futures (OIL) broke below $70 support zone today, indicating that traders expect lower global demand, with constantly erasing geopolitical premium as Middle-East conflict failed to escalate further (until now).
- Low oil prices made Russia's revenues from it to the lowest levels since February. OPEC+ chose to prolong production cuts for two months, but even that move failed to support short-term oil prices momentum, signalling that markets are looking for another, major sentiment shift factors;
- Hurricane Francine is moving towards the Gulf of Mexico, and some US oil drillers are evacuating, halting offshore production - but even that factor didn't stop oil declines. According to Bloomberg, Mysteel OilChem expects that China’s crude imports could drop another 1.2% this year. Traders await today American Petroleum Institute (API) report on US Crude inventories changes (9:30 PM BST).
Falling oil prices may support deeper US Federal Reserve rate cuts, (lower inflation risks) but may be a signal, that global economy demand is falling in faster, than expected pace while last OPEC+ market report may be seen as somehow 'disconnected' from the changing markets realty.
إبدأ بالإستثمار اليوم أو تدرّب على حساب تجريبي
إنشاء حساب حساب تجريبي تحميل تطبيق الجوال تحميل تطبيق الجوالOIL (H1)
Major resistances are now set at $72 and $75 are (EMA50 and EMA200) while even testing $60 per barrel cannot be excluded if Chinese macro data will be still weak, with recession fears rising among US economy.
Source: xStation5
