USOIL could consolidate as it approaches 78.00
Technical Perspective:
USOIL pared recent gains as it reversed below the 84.00 resistance, with the price approaching the 78.00 support. If USOIL rebounds above the 78.00 support, the price could extend its rally to restest the 84.00 resistance again. Beyond that, a breakout of the 84.00 resistance could prompt a further rise, with 86.00 as the next potential resistance. Conversely, if the bearish momentum persists, with a break below the 78.00 support, a further retracement towards the 72.00 support might occur.
Fundamental Perspective:
Oil prices steadied after a recent decline, supported by a reported 4.4 mln barrel drop in US weekly crude oil inventories, according to the API, indicating tightening supply.
Meanwhile, supply constraints from OPEC+ production cuts, geopolitical risks, and Hurricane Beryl's impact could limit further declines in oil prices.
However, market sentiment remains cautious due to weak demand from China, the world's top oil importer, amid an economic slowdown.
USOIL pared recent gains as it reversed below the 84.00 resistance, with the price approaching the 78.00 support. If USOIL rebounds above the 78.00 support, the price could extend its rally to restest the 84.00 resistance again. Beyond that, a breakout of the 84.00 resistance could prompt a further rise, with 86.00 as the next potential resistance. Conversely, if the bearish momentum persists, with a break below the 78.00 support, a further retracement towards the 72.00 support might occur.
Fundamental Perspective:
Oil prices steadied after a recent decline, supported by a reported 4.4 mln barrel drop in US weekly crude oil inventories, according to the API, indicating tightening supply.
Meanwhile, supply constraints from OPEC+ production cuts, geopolitical risks, and Hurricane Beryl's impact could limit further declines in oil prices.
However, market sentiment remains cautious due to weak demand from China, the world's top oil importer, amid an economic slowdown.
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