USOIL remains under pressureFrom a technical perspective, USOIL extended its decline within the descending channel. MACD is holding below the zero threshold, indicating further downside potential. If USOIL sustains its bearish momentum, a further drop toward the 60.00 support might occur. Conversely, a break above 70.00 could prompt a further pullback toward the 80.00 resistance and descending channel's upper bound.
From a fundamental perspective, USOIL remains under pressure after OPEC downgraded its demand forecast for the second time in two months. The new projections indicate that global oil demand is expected to rise by 2 million barrels per day (bpd) in 2024, 80,000 bpd less than anticipated. For 2025, OPEC has reduced the forecast to 1.7 million bpd, a reduction of 40,000 bpd. These revisions are driven by weak consumption in China and the growing adoption of electric vehicles, dampening traditional fuel demand. Despite the bearish sentiment, losses were somewhat tempered by fears of Tropical Storm Francine, which threatens to disrupt oil and gas production and refinery operations along the Gulf Coast.
