Oil price rebound supported by lower US crude oil inventories

Oil price issues

NS Oil price From the annual high ($ 76.98) as US inventories fall more than expected, defending the advance from the monthly low ($ 65.01) and trading back above the 50-day SMA ($ 70.55). It may continue to trace the decline. ..

Oil price rebound supported by lower US crude oil inventories

NS Oil price It will trade close to the weekly highs ($ 72.60) as US inventories shrink by $ 4.89 million in the week leading up to July 23, while they are expected to fall by $ 2.928 billion.Organization of Petroleum Exporting Countries (OPEC) Agree Increase monthly production by 0.4mb / d from August 2021..

Development could have been a one-off event, with a 2,108M increase in the week ending July 16 as demand is expected to improve throughout the second half of this year, and dataprints are OPEC and its Production remains stagnant, suggesting that allies may be kept on a preset course as the United States.

Image of EIA Weekly US Field Production of Crude Oil

A closer look at the Energy Information Administration (EIA) figures shows that weekly field production is shrinking from 11,400K for the week to July 16th to 11,200K. Most recent Monthly Oil Market Report (MOMR) “Global oil demand growth in 2021 is projected to be 6.0 mb / d, unchanged from last month’s assessment,” he stressed.

That said, the price of oil is Will continue to show a bullish trend from the beginning of this year Signs of stronger demand are filled with limited supply, crude oil We will continue to track the decline from the annual high ($ 76.98) as we trade back above the 50-day SMA. ($ 70.55).

Oil price daily chart

Image of daily oil price chart

sauce: Trading view

  • Crude oil has moved out of range of price behavior as it has established an uptrend channel since the third quarter of 2020. Oil prices minus 2019 highs ($ 66.60) as both 50-day SMAs ($ 66.60)$ 70.55) And 200 days SMA ($ 57.72)Established Positive gradient.
  • The price of oil is Rally from the beginning of this year Removes the threat of double top formation, but Lack of momentum to test 2018 highs ($ 76.90) Push crude oil below 50 days SMA ($ 70.55), Relative strength index (RSI) After flashing the textbook sell signal earlier this month, it established a downward trend.
  • Nevertheless, lack of momentum to close below $ 65.40 (23.6% expansion) Region Pushed oil prices back up 50 days SMA ($ 70.55), However, to open the $ 76.90 (50% retracement) area, which is almost the same as July, you need to break / close on the $ 74.40 (50% expansion) zone. High ($ 76.98)..

— By David Song, Currency Strategist

Follow us on Twitter @DavidJSong

Oil price rebound supported by lower US crude oil inventories

Source link Oil price rebound supported by lower US crude oil inventories

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