Market Warns of Global Oversupply Threat, Brent Continues to Under Pressure!
Brent crude oil weakened on Friday (September 19th), amid concerns about slowing global fuel demand and persistently abundant supply. Although the Federal Reserve's interest rate cut provided some support, the market remains cautious.
Brent prices are currently trading in the US$67–68 per barrel range, lower than the previous close. Data on persistently high US crude oil inventories, coupled with expectations of potential increases in OPEC+ production, are contributing to price pressure. "Oversupply concerns are keeping investors on hold, despite positive catalysts from US monetary policy," Reuters reported.
Fed interest rate cuts typically weaken the US dollar and increase the appeal of dollar-denominated commodities like oil. However, the effect this time was limited as the market awaits signals on whether the next cut will be as aggressive as expected.
Technically, Brent's movement remains biased downward. The nearest support is in the US$66.00–66.50 per barrel range. If this level is broken, the price has the potential to test the next support level at US$65. The nearest resistance is in the US$68.00–68.50 area, and a breach could open the way to the psychological level of US$69 per barrel.
Technical indicators such as the RSI and MACD indicate neutral, tending towards bearish momentum, while the 50-day moving average (EMA) is a key level that will determine whether the price can withstand selling pressure.
Overall, the short-term outlook for Brent oil remains dependent on global demand data, the weekly US oil stockpile report, and OPEC+ production policy. Market participants will be closely monitoring key economic data releases this week for clues on future price direction.
Source: Newsmaker.id
