⚔ OIL buyers win the battle – but will they win the war?
OIL saw a very steep correction in the first half of September sliding from $46.50 to $39.30. This level has been turned into a support and so far buyers are able to defend it, preventing more price declines. The fourth successful defense of $39.30 raises chances of at least temporary gains.
OIL buyers are winning battles but can they win the war? OIL fundamentals are still troubling: OPEC cut demand outlook, output is rising and US inventories are moving up again now that the driving season has ended. It seems like OIL gains today have been driven purely by recovering equities with US500 back above 3400 points. A break of $39.30 in case of reversal would pave the way to a stronger support at $37.