The crude oil market is going to continue to see a lot of choppiness from what I see, but we have reached the “measured move” of a head and shoulders in the Brent market, perhaps attracting technical traders at these low levels.
U.S. crude oil bounced back Wednesday, snapping a three-day losing streak. Falling U.S. inventories and the risks that wildfires in Canada could disrupt production are providing support.
With a 3.9 million barrel drop in U.S. crude stocks, oil prices are nearing $77.40, reflecting market tightening and supply concerns.
Falling U.S. crude inventories caused oil prices to rebound on Wednesday after several days of decline, while expectations for a nearing ceasefire deal in the Middle East kept prices from continuing to climb.
The crude oil markets were somewhat quiet in the early hours of Tuesday, as the market continues to see a lot of questions asked of the supply and demand issues, and of course the geopolitical concerns around the world.
Crude oil futures have dropped to the lowest level since early June, despite escalating tensions between Israel and Houthi militants in Yemen. The oil price risk premium is nearly zero as the market has largely looked past Middle East tensions as potential threat to crude supplies, according to a Goldman Sachs note Tuesday.
Oil steadies Tuesday. Traders await US inventory data, expecting 2.5M barrel drop.
With Brent crude steady at $82.40, analysts predict possible upward momentum driven by improved market fundamentals and easing geopolitical tensions.
Oil prices slipped for a third trading session on Tuesday as investors focused on the prospect of swelling oil supplies and weak demand, while showing little reaction to U.S. presidential campaign upheaval.
The crude oil market fell hard in the early hours on Monday, but also is nearing a significant amount of support just below current levels.
Jordan Finneseth is a Crypto Market Reporter for Kitco Crypto. Coming from a background in Psychology and Human Behavior, he began to focus his attention on the cryptocurrency space in early 2017 after noticing the rapid growth of this emerging market.
Oil prices stay flat as traders await Fed decision on rate cuts and assess U.S. political shifts. How will China's slow growth and Middle East tensions impact?