Crude oil pullback bullish trend
💡Message Strategy
Saudi price cuts and OPEC+ supply adjustments affect market sentiment
Crude oil came under pressure in the middle of the week after Saudi Arabia cut its July sales price to Asia to the lowest level in nearly two months. This follows OPEC+'s decision to increase production by 411,000 barrels per day in July, indicating that major oil producers are still prioritizing market share even amid volatile demand signals. This coordinated move by Saudi Arabia and Russia is seen as an attempt to constrain overproducers and strengthen control over global supply dynamics.
Refineries drive crude stock draw, but fuel demand lacks
Weekly data from the U.S. Energy Information Administration (EIA) delivered mixed messages. U.S. crude stockpiles fell by 4.3 million barrels to 436.1 million barrels, driven by a sharp increase in refinery runs, exceeding expectations. Utilization rose to 93.4%, indicating that refineries are preparing for a seasonal peak in demand. Adding to the bullish signal from the crude stock draw.
📊Technical aspects
On the technical side, the daily chart of WTI crude oil shows that oil prices have been under pressure for three consecutive trading days and are currently trading above the 20-day and 50-day moving averages, reflecting the dominance of short-term bullish sentiment. The MACD indicator shows a dead cross and the momentum column is enlarged, indicating that the upward trend is still continuing.
In the previous post, we have pointed out that the upward target and trend of crude oil have been reached. The main theme of crude oil in the future will still be a bullish correction.
💰 Strategy Package
Long Position: 62.50-63.00
