Oil price fluctuated and increased
On Monday, oil price fluctuated and increased as the market was optimistic about the outlook for oil market.
It is a formidable task to replace Russian petroleum
Bank for International Settlements issued a quarterly report, showing that in the long term, for the West, it is a formidable task to replace Russian petroleum. Russian oil account for 10% of global oil market. Without oil supply from Russia, global economy will be hit hard, as other oil-producing countries can’t shore up shortages in oil market.
Both crude oil exports and crude oil production rose to two-year highs in Saudi Arabia in July
According to JODI, oil exports from the world’s largest oil exporter Saudi Arabia increased for the second straight month in July to a 2-year high. In July, oil exports from 7.2 million barrels per day to 7.38 million barrels per day, the highest since April 2020, with an increase of 2.5%.
Technically speaking, USOIL rebounded steadily
On the chart of the day, USOIL closed to the pinbar pattern yesterday. It may rebound in the short term. In terms of technical indicators, macd moved below the zero axis, showing that investors should wait for clear signals. USOIL will jump further if it is stable above the support at 82.1.
On the 4-hour chart, USOIL reversed to the previous structure support and then increased steadily. The market trend is bullish in the short term. In terms of technical indicators, kdj went upwards after golden cross occurred, showing that USOIL will jump further. USOIL will rise further with potential resistance at 88.0-99.0 if it is stable above 86.58.
Key resistance: 86.58, 88.02, 90.17
Key support: 83.63, 82.08, 81.18
Generally speaking, it is a formidable task to replace Russian oil. Concerns on oil supply still supported oil price. Optimism about oil demand also supported oil price. Investors should focus on the US Fed interest rate decision and API oil inventories in the short term.