The Shadow of Oversupply Still Haunts the Global Oil Market
World oil prices recorded a slight decline in trading on Wednesday (September 10th) despite escalating geopolitical tensions in the Middle East. Prices briefly surged nearly 2% following Israel's attack on Qatar, but the gains were short-lived.
Geopolitical factors again contributed to oil price movements, particularly following news of the attack on Qatari territory. However, the market believes the impact of the conflict is still limited and therefore not strong enough to drive a larger rally. Instead, market participants are now more focused on fundamental conditions that tend to depress prices. Pressure is coming from the supply side after OPEC+ announced plans to increase production by 137,000 barrels per day starting in October. This decision reinforces the signal that the oil producer consortium is beginning to relax its production cut policy. (mrv)
Oil prices at the time of writing were at $67.56
- Buy if the price moves within $67.61
- Sell if the price moves within $66.51
Resistance 2: $67.78
Resistance 1: $67.62
Support 1: $67.47
Support 2: $67.30
DISCLAIMER
Note: This article is analytical in nature and is not a definitive reference. Consider fundamental and technical developments in trading before making any investment decisions.
Source: Newsmaker.id
