USOIL, dailyOil prices rose as traders monitored China's economic data and geopolitical tensions in Europe and the Middle East. Prices are also being supported by forecasts of a supply deficit due to peak summer fuel consumption and OPEC+ cuts in the third quarter. Private data showed an expansion in China's manufacturing activity in June, conflicting with official data indicating a contraction and creating uncertainty about the economic outlook. In addition on Friday, the Energy Information Administration (EIA) announced that oil production and demand for major products reached a four-month high in April, providing support for prices.
Recently, the price of crude oil has been trading in a sideway movement between $80 and $82 price area. Currently, the price is testing the upper boundary of this channel formation near the $82 level which is also an area of price reaction since mid-April. The Stochastic oscillator is in the extreme overbought levels which might indicate that a correction to the downside might happen in the upcoming sessions while the moving averages (green and white lines) are validating the overall bearish trend which is still in effect. Overall the technical point of view is hinting a rather bearish sentiment for the short-term outlook unless any major catalyst shows up in the market which might dictate otherwise.