Market Responds to Stockpile Drop and US-India Tensions
Brent crude oil prices showed limited gains today after briefly weakening to a five-week low. This increase occurred amid declining US oil stockpiles and renewed concerns over global geopolitical tensions, particularly between the US and India regarding oil purchases from Russia.
In trading this morning, Brent oil traded in the range of $67.09 to $67.50 per barrel, up around 0.4–0.6% compared to the previous day. Positive sentiment came from the American Petroleum Institute (API) report, which recorded a drawdown in crude oil inventories of 4.2 million barrels in the past week—far exceeding analysts' expectations. This data indicates strong demand from the US domestic market, ahead of the end of the summer season.
Tensions also escalated after the US government announced plans to raise tariffs of up to 50% on India, following New Delhi's decision to continue purchasing Russian oil. This move sparked market concerns that the global energy supply chain would be disrupted again, especially if other countries were subject to similar sanctions.
Despite the price increase, the market remained cautious. OPEC+ is scheduled to increase production to 547,000 barrels per day starting in September, potentially putting additional pressure on prices in the medium term.
Technically, indicators such as the short- and long-term Moving Averages (MAs) remain bearish, with several analysis platforms rating them "Strong Sell." The nearest support level is at $67.30, and if broken, the price could potentially fall to the $62–$64 range. Conversely, if a rebound occurs, the next resistance level is located in the $70–$72 area.
Source: Newsmaker.id
