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Сonflicting signals in oil market

Olymp Trade

Oil has received conflicting signals lately and has been flat for almost a week. The $63 level acts as local support, and the $64.3 level is the resistance one. In the medium term, Brent is still correcting upward since early June, but if bulls manage to push the price below $ 61.8, the trend is highly likely to change. If the movement continues in the current price channel, the asset can return to its upper limit at $67-68.

On Wednesday, the market ignored data on US oil inventories, which has declined by 10.84 million barrels over the past week, compared to the forecast of 4.0 million. The US Department of Energy also reported that oil production in the United States fell by 700 thousand barrels per day down to 11,3 million barrels This is caused by the suspension of mining in the Gulf of Mexico due to Barry Hurricane.

One of the main fundamental factors that influence the quotes apart from the trade war between the US and China are the growing risks of a slowdown in the global economy, which are intensifying despite the likely easing of monetary policy by the largest central banks. Due to this factor, the International Energy Agency lowered its forecast for oil demand. Energy consultancy FGE also lowered its forecast for oil demand growth in 2019.

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Source: https://olymptrade.com/
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