Oil prices edged down on Wednesday after industry data showed U.S. crude inventories had swelled more than expected, while the market kept watch on diplomatic efforts in the Middle East as Israel continued attacks on Gaza and Lebanon.
Viktor Katona, head of oil analysis at Kpler, discusses oil prices as energy market participants continue to closely monitor the potential for Middle East supply disruptions.
Oil fell in the early Asian session amid prospects of cooling geopolitical tensions in the Middle East.
Goldman Sachs expects oil prices to average $76 a barrel in 2025 based on a moderate crude surplus and spare capacity among major producers, with concerns easing over a potential disruption in Iranian supply, it said in a note on Tuesday.
Crude oil rebounds from support, completing a 38.2% retracement. Bulls watch for confirmation above the 50-Day MA and resistance near 74.10 for further upside momentum.
The crude oil market has rallied a bit in the last 24 hours, as the market looks likely to continue to hang onto the idea of staying in the same range we have been in for the last two years.
Oil prices have bounced back somewhat after selling off steeply last week. Beijing cuts its benchmark lending rate on Monday, lending some support to the futures market.
Oil futures were on track for back-to-back gains, attempting to claw back steep losses suffered last week as fears of a broader Middle Eastern conflict that could threaten crude flows from the region faded.
Crude oil prices rise on Mideast conflict risks, but China's soft demand and a strong U.S. dollar could limit gains. Breakout past $70.68 signals bullish potential.
Geopolitical risks and China's economic slowdown are driving oil prices lower, while technical indicators suggest potential bearish momentum for natural gas.
Oil and natural gas prices initiated a rebound after the PBoC's Loan Prime Rate cuts, but the overall trend remains bearish.
Oil prices fell on Tuesday, paring the previous day's nearly 2% rise as the top U.S. diplomat renewed efforts to push for a ceasefire in the Middle East, and as slow demand in China, the world's top oil importer, continued to weigh on the market.