Lately, oil prices suffered a sharp loss on the sluggish demand,
shrinking to $36.12 for a high above $43.0 and refreshing the
three-month low.To get more news about
WikiFX, you can visit wikifx official website.
According to the latest figures, both API and EIA inventories have
swelled with the latter up to 500.4 million barrels. In addition, the
total oil rigs in the U.S. have decreased to 180 and the demand for
crude oil has entered a phase of slowing growth, said Baker Hughes, a
U.S. energy services firm.
The monthly reports of OPEC and the IEA will be released today and
tomorrow, respectively, while the oil market will keep eye on this
Thursday's OPEC and non-OPEC Ministerial Meeting. Recent signals of
adding output sent by Saudi Arabia and Russia have curbed further cuts
in production. The meeting is expected to focus on member states'
implementation of production cuts, which can hardly lift oil prices.
According to the daily chart, oil prices are supported around $36.50
and may see a rebound in the short term, whereas the downtrend seems to
be enduring in the medium and long term. A breach below $36.0 is waiting
ahead if oil prices again achieve a rally but hampered by the
resistance of $38.50-39.0.
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