Oil prices rose on Monday after China announced measures to boost its struggling economy, including halving stamp duty on stock trading. Investors, however, remained concerned about the pace of economic growth and the impact of further US interest rate hikes on oil demand. The market also kept an eye on Tropical Storm Idalia and its potential impact on oil and gas production in the US Gulf.
‘Despite concerns, falling oil inventories and supply cuts from OPEC+ have kept oil prices above $80 a barrel. Saudi Arabia is expected to extend its voluntary oil output cut of 1 million barrels a day into October to further support the market.’ said Antreas Themistokleous, market analyst in Exness.
On the technical point of view the price is currently trading at an area on the chart where the 23.6% of the daily Fibonacci retracement level and the 20 day moving average are. The 50 day moving average is trading well above the 100 day moving average indicating that the overall bullish trend is still in effect.
If the current area is proven to be a strong resistance and the price resumes the most recent bearish trend then the level of $77.80 is the major technical support level consisting of the 38.2% of the daily Fibonacci retracement level, the lower band of the Bollinger bands as well as the 50 day moving average.
‘Despite concerns, falling oil inventories and supply cuts from OPEC+ have kept oil prices above $80 a barrel. Saudi Arabia is expected to extend its voluntary oil output cut of 1 million barrels a day into October to further support the market.’ said Antreas Themistokleous, market analyst in Exness.
On the technical point of view the price is currently trading at an area on the chart where the 23.6% of the daily Fibonacci retracement level and the 20 day moving average are. The 50 day moving average is trading well above the 100 day moving average indicating that the overall bullish trend is still in effect.
If the current area is proven to be a strong resistance and the price resumes the most recent bearish trend then the level of $77.80 is the major technical support level consisting of the 38.2% of the daily Fibonacci retracement level, the lower band of the Bollinger bands as well as the 50 day moving average.