Oil prices fell in early trade on Wednesday as markets were assessing the outcome of U.S.-China trade talks, yet to be reviewed by President Donald Trump, with weak oil demand from China and OPEC+ production increases weighing on the market.
Oil hovers near $65.4 as OPEC+ output plans and geopolitical risks cloud bullish sentiment in WTI and Brent. Natural gas steadies near $3.63 support.
WTI crude oil rebounded from the key level of $55 toward the resistance at $66, while natural gas remains bullish above the key level of $3.
The crude oil markets are getting very interesting at the moment, as the WTI/CL contract looks to break above a massive resistance barrier. Are we finally going to see the breakout that the market has been hinting at?
Crude oil futures edge higher as traders focus on the 200-day MA; OPEC output plans and U.S.-China trade talks steer near-term oil prices forecast.
Claudio Galimberti, Chief Economist & Global Director of Market Analysis at Rystad Energy, shares his view on the oil market and adds that the "litmus test" for global oil demand would be the OPEC+ meetings in August and September. He adds that an increase in output from the oil production group would signal a change in positioning from price support to market share.
Oil prices held on to last week's gains early on Monday as investors waited for U.S.-China trade talks to be held in London later in the day.
WTI crude rises 4% as demand and geopolitical tensions lift sentiment, but resistance at $63.86 and weak Asia demand cap gains.
Oil prices slipped on Friday but were on track for their first weekly gain in three weeks after U.S. President Donald Trump and China's Xi Jinping resumed trade talks, raising hopes for growth and stronger demand in the world's two largest economies.
Oil prices are defying the odds right now, rising despite a near-certainty that the oil market will be oversupplied in a matter of weeks. Absent a geopolitical shock like an escalation between the U.S. and Iran, oil prices seem destined to fall in the coming weeks.
Crude oil markets continues to look as if they are building a bit of pressure in a basing pattern. With this, the market is likely to continue to see a lot of choppy behavior.
Oil edged lower in the early Asian session amid mixed signals.