Abundant Supply Causes Oil to Weaken
Brent oil prices fell slightly to around US$67.36 per barrel in trading on Monday (September 1), as pressure from surging global production offset the impact of supply disruptions caused by the Russia-Ukraine conflict. A surge in US production, reaching a record 13.58 million barrels per day in June, also increased the potential for a market surplus.
On the demand side, sentiment remains weak, particularly due to the contraction in China's manufacturing sector, which has lasted for five consecutive months. This worsens the outlook for global energy consumption, limiting room for price appreciation.
Oil prices at the time of writing were at $67.19/Toz.
- Buy if the price moves around $67.24
- Sell if the price moves around $67.14
Resistance 2: $67.36
Resistance 1: $67.29
Support 1: $67.09
Support 2: $67.00
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