U.S. crude benchmark West Texas Intermediate (WTI) rose 1% on Monday as the outlook for oil demand improved, OPEC+ reported, easing concerns that the global economic outlook could affect prices while demand woes eased.
Analysis of the latest crude oil market trends:
During the European trading session on Tuesday (November 14), crude oil prices were trading around US$78.55 per barrel. After three consecutive weeks of decline, crude oil prices rebounded. Traders are waiting for industry reports this week to confirm whether the recent decline is excessive. Analysts at Goldman Sachs Group Inc said renewed demand concerns drove the sell-off, but consumption remained strong throughout the year and could continue that momentum in 2024. Goldman Sachs also lowered its price forecast for next year to $92/barrel. Analysts said crude oil started the week back on the defensive, but so far both Brent and WTI have held above key support levels, possibly signaling that the worst of the long-term unwinding is over. Oil prices rose more than 1% on Monday after OPEC’s monthly market report eased concerns about weakening demand and a U.S. investigation into alleged violations of Russian oil sanctions raised concerns about potential supply disruptions. Analysts said in a note: “OPEC’s monthly oil market report appeared to push back on demand concerns, citing excessive negative sentiment surrounding demand from the Asian giant, while raising its demand growth forecast for this year and maintaining its forecast for next year. constant.
Crude oil rebounded and closed higher yesterday. The daily line closed with a small positive line, forming a double positive rebound. Combined with the cross K line last Friday, the daily line slightly started to stabilize and rebounded higher. The continuous consolidation in the small cycle stabilized the support around 75.0. In addition, for two consecutive days, the crude oil price rebounded and closed higher. It failed to fall below the low in the first trading day, so that the short-term weakness was not extended, but the rhythm of seesawing and oscillation appeared. In the 4-hour chart, it held the mid-track and continued to rise, breaking through the small resistance point of 77.7, forming a small cycle rebound and rise. At present, the structure of the 4-hour chart is biased towards further rebound, relying on the middle rail as a support point to be bullish first. It depends on how the market outlook changes. It is currently a rebound correction in the downward trend. Combine space and structure to determine whether the market outlook is a reversal or correction. Changes in direction will occur as space and form change. The short-term period has entered the shock correction stage, and there are opportunities for long and short positions at stuck points. On the whole, today’s short-term operation of crude oil, Chen Jinhao recommends to focus on the rebound from high altitudes, supplemented by the callback to lows and longs. The top short-term focus is on the 79.5-80 first-line resistance, and the bottom short-term focus is on the 77-77.5 first-line support.
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