Crude Oil

Crude Oil Update – Selling Pressure Resumed Last Week Ahead Of BRICS Summit – China’s Weak Demand Continues

Hello Traders,

Following up our previous update and analysis for Crude Oil Futures (Crude Oil Weekly/Monthly Outlook – Middle East Tensions Allow Buyers To Defend The $66 Area – What’s Next? – OneRoyal Blog) we are finally heading into the BRICS Summit this week in Kazan between Tuesday the 22nd into Thursday 24th of October.

BRICS is attracting an ever increasing number of supporters and like-minded countries that share its underlying principles, namely, sovereign equality, respect for the chosen path of development, mutual consideration of interests, openness, consensus, the aspiration to form a multipolar international order and a fair global financial and trade system, and pursuit of collective solutions to top challenges of our time. One of the plans and discussions is the trade agreements of Oil without the use of the US Dollar.

Furthermore, China’s weak demand continues which is the world’s largest importer of oil. According to Reuters ( https://www.reuters.com/business/energy/chinas-surplus-crude-oil-hits-nearly-1-million-bpd-september-russell-2024-10-21/ ), China’s surplus of crude oil hits nearly 1 million bpd for September, adding more pressure in Oil prices.

Let’s have a look at the technical outlook for Crude Oil Futures.

Crude Oil Daily Time Frame – Remains Under Pressure – Rangebound Volatility Between $66 – $78 Area During The Last 2 Months – Bearish Trend Remains Intact 

crude oil 21 oct

 

The recovery rally we have seen between 10.09.2024 into 08.10.2024 has failed with a strong reaction lower from the $78 area. The current outlook shows that there is not enough buying power in the market. As far as prices remain below 08.10.2024 peak, selling pressure could potentially intensify and the $63.76 area (Lows from May 2023) could be at risk of breaking. Any potential hints or remarks from the BRICS Summit about any progress on the de dollarization plans of oil trade between the member countries of the alliance, might add more to the selling pressure as well.

On Wednesday as well the US Crude Oil Inventories should provide us with more supply data, as the week might provide further volatility as to the next potential trajectory Oil prices could be heading towards.

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Crude Oil Update – Selling Pressure Resumed Last Week Ahead Of BRICS Summit – China’s Weak Demand Continues

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