Abundant Supply Overshadows Sentiment, Oil Weakens
World oil prices experienced downward pressure today, fueled by growing market concerns about a global oversupply and a resurgence in Iraqi oil exports from the Kurdish region.
According to a Reuters report, oil continued to weaken following news that the Iraqi federal government and the Kurdish regional government had agreed to reopen an oil export pipeline through Turkey, which had been suspended since March 2023. The additional exports, reaching 230,000 barrels per day, are seen as a factor in increasing supply to the global market. Furthermore, despite some initial support from a decline in US crude oil inventories, supply-side pressures appear to be more dominant. Concerns that OPEC+ will ease production cuts while global demand has not yet fully recovered underpin today's downward movement.
Brent oil price at the time of writing was $67.53
- Buy if the price moves within $67.58
- Sell if the price moves within $67.48
Resistance 2: $67.83
Resistance 1: $67.68
Support 1: $67.45
Support 2: $67.27
Disclaimer:
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
