USOIL plunged by around 3%
On Monday, as market demand for oil fell, USOIL closed down around 3% to a 3-week low.
The World Bank expected that oil price will fall next year
As global economy grows at a slower pace, the average oil price will be US$90 per barrel and US$81 per barrel in the fourth quarter of 2023 and in 2024 respectively, the World Bank said on the 30th October.
Saudi Arabia is likely to suspend raising selling price of oil exported to Asia
According to the news on the 30th October, Saudi Arabia may suspend raising selling price of crude oil exported to Asia for the first time since 6 months ago, because the decline in oil refining profit margin cut the demand of spot crude oil.
The bearish market trend prevailed in the short term
the Chart of the Day
On the chart of the day, USOIL fell sharply yesterday. The bearish market trend prevailed in the short term. In terms of technical indicators, KDJ went downwards after death cross occurred, showing USOIL will fall further. Investors should focus on whether USOIL will break through the resistance at 83.5. It will fall further if it rebounds but is capped at 83.5.
On the 4-hour chart, USOIL was prone to fluctuation and declined. The bearish market trend prevailed. In terms of technical indicators, MACD went downwards after death cross occurred below the zero axis, showing the market trend is bearish. Investors should focus on whether USOIL will break through the support at 80.6. It will fall further with potential support at 77.5 if it breaks below 80.6.
Key resistance: 83.5, 85.5
Key support: 80.5, 77.5
Generally speaking, as market demand for oil fell, USOIL is likely to fall further in the short term. Investors should focus on US API inventories during the day.