oil weekly outlook Continuous downtrend on oil. Currently around the area of 97.75. Waiting for retrace to trend line before continuing down. Crude has tested this current minor structure demand area three times since july 5th. Formed a double bottom on the Weekly timeframe. Waiting for a break and close below current support around $97.00.
With continued recession fears, and demand stopping has been causing oil to fall for the past few weeks. If current support and demand structure broken it will be a confirmation of continued selloff and possible to $60 price range.Waiting to see how it reacts to retracement to the trend line. If it respects the trend line confirmation of continued sell, if it breaks the trend line then wait for pull back confirmation for buy.
China having rising COVID cases and possibly going backdown on lockdown cause cause a continued selloff for oil, making demand a worry for oil. China is one of the nation's top oil importer. China was already on lockdowns earlier this year. On Friday, July 15th President Biden took a trip to discuss oil production in hopes to get gas prices down. He visited Saudi and the market reacted friday to the meeting, expecting very little progress for oil production. Oil rose. On Sunday July 17th a Senior U.S. state department advisor stated middle east nations would being taking extra steps to increase oil production. With the increase from some middle east nations, OPEC + 650,000 increase set for July and August already would be enough to keep oil prices down.
