WTI has a lot of technical pressure
USOIL weakened in early trading in Asian markets on Monday (August 19), fluctuating near its lowest level in more than a week. Currently WTI crude oil is trading around 75 USD/barrel.That added to traders' concerns about falling demand in the Asian giant, where refiners cut crude processing capacity last month amid sluggish fuel demand.
The Organization of the Petroleum Exporting Countries (OPEC) last week lowered its forecast for oil demand growth this year due to weakness in the Asian giant's economy. The Paris-based International Energy Agency (IEA) last Tuesday lowered its oil demand growth forecast for 2025, citing weak demand from major countries in Asia.
On the other hand, according to the Lebanese National News Agency, the Israel Defense Forces carried out airstrikes on the 18th.
Lebanon's Hezbollah armed forces claimed to have attacked multiple targets in southern Lebanon, including Israeli military spy facilities.
On the 18th, the Israeli army launched multiple attacks on several towns on the Lebanese side of the temporary border between Lebanon and Israel.
Market sentiment this week will be determined by speeches from global central bankers at the Jackson Hole Economic Symposium.
The Jackson Hole Economic Symposium will be held from August 22 to 24 and Fed Chairman Powell will speak on the economic outlook on Friday as US inflation weakens but remains difficult and markets Weakened job market. Easing is imminent, but is unlikely to confirm continued expectations of significant interest rate cuts.
On the daily chart, WTI USOIL moved narrowly after falling below the price channel and structurally it has not yet formed a specific trend.
But technical factors are leaning more towards the possibility of price decline with the nearest resistance being noticed at the confluence area of the 0.382% Fibonacci retracement and EMA21.
As long as WTI crude oil cannot break and move above the 0.50% Fibonacci level, it does not have enough conditions for bullish expectations.
Meanwhile, once WTI crude oil continues to be sold below the 0.236% Fibonacci level and returns to the price channel, it will open a new technical down cycle. The notable point is that the Relative Strength Index is pointing down from the 50 level but has not yet reached the oversold level, showing that there is still room for technical price declines ahead.
During the day, the technical outlook for WTI crude oil leans towards a downside with notable levels listed as follows.
Support: 75.71USD
Resistance: 76.59 – 77.58USD
Note
OIL FALLS MARGINALLY AND BRENT CONTINUES TO TRADE BELOW $80.. WHAT IS AFFECTING OIL MOVEMENTS?
Oil prices fell during Monday's trading, for the second day in a row, with Brent crude continuing to trade below $80 per barrel, after touching its lowest levels since August 9 for the second session amid investor concerns about oil demand levels in China, the world's largest importer of crude, after very negative data last week.
Note
Note
Oil prices increased +0.035% after tensions between Israel and Lebanon continued to escalate over the weekend.
In terms of technical analysis, WTI oil prices rebounded before reaching the important support level around 72 USD/barrel. With concerns about US demand, oil prices may have more room to recover.
Note
Crude oil prices rebounded on news that a hurricane could hit the US Gulf Coast by mid-week, with the US National Hurricane Center saying yesterday that the weather system in the southwest Gulf of Mexico is expected to turn into a hurricane before reaching the northwestern Gulf Coast.Note
Oil prices (USOIL) recovered slightly to about 68.34 USD/barrel (+1.08%).
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