Crude Oil Futures Under Pressure Ahead of US Inventory Data Release
Crude Oil Prices Steady as Market Awaits Inventory Data
Crude oil futures are currently trading within a pivotal retracement range between $72.21 and $69.79. A breakout above $72.21 may indicate buying interest, while a drop below $69.79 could lead to increased selling activity. Market dynamics remain bearish as prices linger below both the 50-day moving average of $71.55 and the 200-day moving average of $73.46, signaling weakness in intermediate and long-term trends.
OPEC's Demand Forecasts Weaken Oil Expectations
Recent reports indicate that OPEC has lowered its global oil demand forecasts, resulting in declines for both Brent and US West Texas Intermediate (WTI) crude oil. Following the downward revisions, the 2024 demand growth estimate now sits at 1.93 million barrels per day (bpd), down from previous projections.
- China's slowing economy has influenced OPEC's forecast adjustments.
- An overall surplus of oil is expected in 2024 according to the International Energy Agency (IEA).
US Inventory Data and Market Response
Traders await the US Energy Information Administration’s upcoming inventory report, projected for today. Preliminary results have signaled declining crude stocks, which if confirmed, may indicate a rebound in demand and potential support for oil prices.
- Potential impacts from US jobless claims data to be noted.
- European Central Bank's rate decisions could also shape market dynamics.
Overall, the outlook remains negative with the added pressure of geopolitical factors potentially swaying the market. A bullish impulse may only serve as a temporary buffer against prevailing bearish trends.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.