WTI struggles to cheer Russia, OPEC news below $70.00 as China woes prod Oil buyers


  • WTI crude oil fades bounce off two-week low amid mixed catalysts.
  • OPEC Secretary General, Aramco Official signal upbeat Oil demand.
  • Mixed concerns about Russian fears to energy supplies put a floor under the black gold price.
  • Fears about China’s economic slowdown, higher rates challenge energy buyers.

WTI crude oil remains depressed around the intraday low, mildly offered near $69.45 by the press time of the mid-Asian session on Monday, as the energy market flashes mixed signals.

That said, hopes of more Oil demand and supply crunch, backed by OPEC and Russia catalysts, contrast with the fears of slower economic growth in the world’s biggest commodity user China.

Recently, Haitham Al Ghais, the Secretary-General of the Organization of the Petroleum Exporting Countries (OPEC), raised hopes of higher Oil demand while saying, “OPEC sees global oil demand rising to 110mn barrels per day (bpd) by 2045.” On the same line were comments from Saudi Aramco CEO Amin Nasser who said, “Oil markets fundamentals remain generally sound for the rest of the year.”

Also read: OPEC’s Al Ghais: OPEC sees global oil demand rising to 110mn bpd by 2045

Previously, headlines suggesting the geopolitical turmoil surrounding Russia and hopes of China stimulus allowed the Oil price to keep the rebound from the lowest level in two weeks, marked the previous day.

Also read: Weekend News: Russia, China and SNB’s Jordan were in focus

However, news suggesting that the global rating giant S&P cut China’s Gross Domestic Product (GDP) growth forecasts for 2023 to 5.2% from 5.5% previous estimations weigh on the Oil price. On the same line are concerns suggesting major investors’ pause in China investment, hawkish comments from the Fed officials and comparatively upbeat US data.

Amid these plays, the US Dollar Index (DXY) remains pressured around the intraday low of 102.70, paring the biggest weekly gain in four, whereas the S&P500 Futures print mild gains.

Moving on, headlines surrounding China and Russia may entertain Oil traders but major attention will be given to the US inflation and central bankers’ speeches at the European Central Bank (ECB) Forum, as well as the US Bank Stress Tests.

Technical analysis

Friday’s bullish Doji candlestick challenges WTI Crude Oil sellers unless the quote slips beneath the one-month-old horizontal support zone near $67.00.

Additional important levels

Overview
Today last price 69.42
Today Daily Change -0.16
Today Daily Change % -0.23%
Today daily open 69.58
 
Trends
Daily SMA20 70.59
Daily SMA50 72.56
Daily SMA100 74.35
Daily SMA200 77.79
 
Levels
Previous Daily High 69.65
Previous Daily Low 67.41
Previous Weekly High 72.7
Previous Weekly Low 67.41
Previous Monthly High 76.61
Previous Monthly Low 64.31
Daily Fibonacci 38.2% 68.79
Daily Fibonacci 61.8% 68.26
Daily Pivot Point S1 68.11
Daily Pivot Point S2 66.63
Daily Pivot Point S3 65.86
Daily Pivot Point R1 70.35
Daily Pivot Point R2 71.13
Daily Pivot Point R3 72.6

 

 

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