Crude Oil Price hit their lowest level since early June, weighed down by lingering worries about demand in top consumer China. The latest data showed that China’s total fuel imports fell by 11% in the first half of 2024.
Concerns about China’s broader economic outlook deepened after disappointing GDP numbers and the PBOC’s surprise rate hike decreased last week to boost growth. influence the market.
In addition, fears of geopolitical tensions in the Middle East have eased somewhat after reports indicated that Hezbollah has begun moving precision-guided missiles but does not intend to provoke a full-scale war with Israel.
The United States is also leading a diplomatic effort to get Israel to give up vital civilian infrastructure in Lebanon.
Caution weighed on sentiment ahead of the meeting of the Organization of the Petroleum Exporting Countries, although recent weakness in crude could weigh on cartels’ production cut plans. OPEC’s Joint Ministerial Oversight Committee will meet on August 1, although reports say the meeting will be routine and produce little production.
But analysts said the recent weakness in crude oil prices may have caused major producers Russia and Saudi Arabia to further scale back their plans to increase production this year, as they had previously predicted in 2024.
Dollar strength also weighed on prices. in 2018, as money rebounded ahead of this week’s Federal Reserve meeting. The Fed is widely expected to keep interest rates unchanged. But any sign of plans to cut rates is being closely watched, keeping markets.
Technical Outlook (Crude oil Price)
The price of oil extended its decline at the beginning of the week. Prices rose to 6,322, hitting a two-month low, and fell to 6,351, down 1.96%.
On the above chart, prices trading near the key support at 6290 expect a continuation of the decline to 6210-6155.00. Otherwise, a short-term bounce to 6480-6500 is likely to add pressure soon.
On the upside, huge resistance is seen at 6655, but above that, prices will recover to 6750-6850.00.
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Commodity Samachar
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