Will oil prices fall further today?
Oil prices fell on Monday as investors prepared for a meeting of OPEC officials and major producers this week, with weak July production data from China and Japan weighing on the demand outlook. Others regarding supply adjustments.
Brent crude futures were down $1.19, or 1.1%, at $102.78 a barrel by 0212 GMT. West Texas Intermediate crude was at $97.19 a barrel, down $1.43, or 1.5%. The new COVID-19 lockdown completed a short-term recovery in factory activity in June in China, the world’s largest crude oil importer. Data on Monday showed the Caixin/Markit Purchasing Managers’ Index (PMI) fell to 50.4 in July from 51.7 the previous month, missing analysts’ expectations. Japan’s manufacturing activity expanded to a 10-month low in July, data showed on Monday.
“Data showing a sharp slowdown in economic activity suggests that the recovery of the world’s second-largest economy from Covid-19 may not be as positive as previously thought. Demand outlook for crude oil markets is bleak.” Brent and WTI end July 2020 It fell for the second straight month for the first time since, as rising inflation and rising interest rates fueled fears that a recession will destroy oil demand. . Fuel sales to drivers in the UK have fallen as demand for petrol remains below its five-year average over the year, ANZ analysts said.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, a group known as OPEC+, will meet on Wednesday to decide September output. Two of the eight OPEC+ sources polled by Reuters said a modest September output increase would be discussed at their Aug. 3 meeting, while others said output could be higher. keep it steady. The meeting follows US President Joe Biden’s visit to Saudi Arabia last month.
“While President Biden’s visit to Saudi Arabia did not produce oil immediately, we believe the kingdom will respond by gradually increasing production,” RBC Capital analyst Helima Croft said in a statement. Since the 2020 COVID-19 pandemic Since the takeover, OPEC+ production records have fallen completely in early August. Meanwhile, U.S. oil production continued to rise as the rig count rose by 11 in July, marking a record 23rd straight month, Baker Hughes data showed.
Oil appears to be trading sideways between $93,434 and $101,208 a barrel, seemingly awaiting a meeting, based on hourly to 4-hour price technical analysis.
For today, I encourage a wait-and-buy at 93,434 and set profit at 98,000 and set risk at $90,933
Analyzed by: Mr. Long Samnang Business Manager of PP Link Securities
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