Solid Demand & Fed Dovish Expectations Could Lift Brent
Brent oil prices held steady this morning at around US$67.7 per barrel, slightly weakening from yesterday's strengthening trend, supported by declining US crude inventories and continued solid demand, particularly from increased jet fuel consumption during the summer holiday season. EIA data recorded a decline in inventories of up to 6 million barrels, much sharper than analysts' estimates of 1.8 million barrels.
On the geopolitical front, hopes for a quicker resolution of the Russia-Ukraine conflict appear to be fading, thus continuing to support the risk premium in global energy markets. Furthermore, the market is also monitoring the potential for US monetary policy easing through the Jackson Hole Economic Symposium. Expectations of a dovish signal from the Fed are feared to drive higher energy demand, supporting Brent oil prices.
Oil prices at the time of writing were at $67.63/Toz.
- Buy if the price moves around $67.68
- Sell if the price moves around $67.58
Resistance 2: $68.05
Resistance 1: $67.86
Support 1: $67.48
Support 2: $67.38
DISCLAIMER
Note: This article is analytical only and is not a definitive reference. Consider fundamental and technical developments in trading before making investment decisions.
Source: Newsmaker.id
