Oil prices losing strength due to China's economic slowdown
<Fundamental>
Oil prices continue to trend downward, as are expectations for increased U.S. oil production and pessimism about the Chinese economy. Expectations are growing that oil prices will gradually fall following reports that new wells will be drilled in US shale fields, and the costs for them will drop significantly by about 10% this year alone. Meanwhile, the economic slowdown in China, the world's largest crude oil importer, is also putting downward pressure on oil prices. China's oil imports in June fell 10.7% amid disappointment that the PBoC's rate cuts were not large enough to boost the Chinese economy.
<Technical>
USOIL (WTI) has been trending downward over the past week, falling to the 75.10 level. After death-crossed, both EMAs rapidly widen the gap and send out a typical bearish signal. If USOIL fails to hold the 75.00 support, where the trend line intersects, the price could fall further to 72.50. Conversely, if USOIL advances toward the 76.80 resistance after recovering EMA21, the price may gain upward momentum toward the 78.20 level.
Oil prices continue to trend downward, as are expectations for increased U.S. oil production and pessimism about the Chinese economy. Expectations are growing that oil prices will gradually fall following reports that new wells will be drilled in US shale fields, and the costs for them will drop significantly by about 10% this year alone. Meanwhile, the economic slowdown in China, the world's largest crude oil importer, is also putting downward pressure on oil prices. China's oil imports in June fell 10.7% amid disappointment that the PBoC's rate cuts were not large enough to boost the Chinese economy.
<Technical>
USOIL (WTI) has been trending downward over the past week, falling to the 75.10 level. After death-crossed, both EMAs rapidly widen the gap and send out a typical bearish signal. If USOIL fails to hold the 75.00 support, where the trend line intersects, the price could fall further to 72.50. Conversely, if USOIL advances toward the 76.80 resistance after recovering EMA21, the price may gain upward momentum toward the 78.20 level.
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