Oil Prices Drop on Weak China Demand & Gulf Storm
Oil prices continue to drop as weak demand in China persists, despite disruptions from Tropical Storm Francine in the Gulf of Mexico. Latest data shows consumer inflation in China rising slower than expected, with crude oil imports rebounding slightly from July but still weak on a seasonal basis.
In the Gulf, oil and gas producers are shutting down platforms and evacuating workers as they brace for the storm.
đź“Š Technical Outlook: The market is approaching key support levels:
• 38.2% retracement at $65.16 (2020-2022 move)
• $63.64 (2023 low)
• $61.74 (mid-2021 low)
While these levels might hold during the initial test, it’s unlikely they'll prompt a reversal. With the market trading below the 200-week moving average and breaking the 55-month moving average, there's potential for prices to dip below $50 in the longer term. A negative bias remains below $84.52, and if support levels break, we could see a structural downtrend.
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In the Gulf, oil and gas producers are shutting down platforms and evacuating workers as they brace for the storm.
đź“Š Technical Outlook: The market is approaching key support levels:
• 38.2% retracement at $65.16 (2020-2022 move)
• $63.64 (2023 low)
• $61.74 (mid-2021 low)
While these levels might hold during the initial test, it’s unlikely they'll prompt a reversal. With the market trading below the 200-week moving average and breaking the 55-month moving average, there's potential for prices to dip below $50 in the longer term. A negative bias remains below $84.52, and if support levels break, we could see a structural downtrend.
Disclaimer:
The information posted on Trading View is for informative purposes and is not intended to constitute advice in any form, including but not limited to investment, accounting, tax, legal or regulatory advice. The information therefore has no regard to the specific investment objectives, financial situation or particular needs of any specific recipient. Opinions expressed are our current opinions as of the date appearing on Trading View only. All illustrations, forecasts or hypothetical data are for illustrative purposes only. The Society of Technical Analysts Ltd does not make representation that the information provided is appropriate for use in all jurisdictions or by all Investors or other potential Investors. Parties are therefore responsible for compliance with applicable local laws and regulations. The Society of Technical Analysts will not be held liable for any loss or damage resulting directly or indirectly from the use of any information on this site.
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