WTI Crude Oil facing downward pressure - 07/16/2024 (GMT)
Fundamental
Oil prices are falling as US consumer indicators worsen. Due to the slowdown in CPI, the possibility that the Fed will cut the interest rate in September has sharply increased. Still, concerns about an economic slump are becoming more prominent. The University of Michigan's July consumer sentiment index fell to its lowest in eight months, and China's economic slowdown is also a decisive factor in the decline in oil prices.
Meanwhile, there is also a view that the strength of oil demand will be sustained until the end of the year. According to the EIA, gasoline demand last week was the highest since 2019 for the week that includes the Independence Day holiday, and the four-week average for jet fuel demand also rose to its highest since January 2020.
Technical
After reaching the 82.50 level, USOIL lost its uptrend and fell to the 80.20 level. The price fails to hold above the EMAs and sends an apparent bearish signal. If USOIL's downtrend continues and retreats to the 80.00 support, the price may fall further to the 78.00 level, the lowest point in a month. Conversely, if USOIL rallies to the 81.00 level, where EMA21 and the initial support intersect, the price could gain upward momentum toward the 84.00 resistance.
Oil prices are falling as US consumer indicators worsen. Due to the slowdown in CPI, the possibility that the Fed will cut the interest rate in September has sharply increased. Still, concerns about an economic slump are becoming more prominent. The University of Michigan's July consumer sentiment index fell to its lowest in eight months, and China's economic slowdown is also a decisive factor in the decline in oil prices.
Meanwhile, there is also a view that the strength of oil demand will be sustained until the end of the year. According to the EIA, gasoline demand last week was the highest since 2019 for the week that includes the Independence Day holiday, and the four-week average for jet fuel demand also rose to its highest since January 2020.
Technical
After reaching the 82.50 level, USOIL lost its uptrend and fell to the 80.20 level. The price fails to hold above the EMAs and sends an apparent bearish signal. If USOIL's downtrend continues and retreats to the 80.00 support, the price may fall further to the 78.00 level, the lowest point in a month. Conversely, if USOIL rallies to the 81.00 level, where EMA21 and the initial support intersect, the price could gain upward momentum toward the 84.00 resistance.
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