NYMEX crude oil short-term look at 78.11 US dollars
On Thursday (August 3), international oil prices extended their decline from the previous trading day, as Fitch’s downgrade of the U.S. government’s credit rating weighed on market sentiment, although concerns about tight supply provided some support. NYMEX crude oil looks at $78.11 in the short term.
At 15:40 Beijing time, NYMEX crude oil futures fell 0.58% to $79.03 a barrel; ICE Brent crude futures fell 0.55% to $82.74 a barrel.
Both markets fell nearly 2% overnight as rating agency Fitch downgraded the main credit rating of the United States, the world’s largest oil consumer, reflecting an expected fiscal deterioration and a high and growing government debt load.
But supply concerns underpinned prices as the Organization of the Petroleum Exporting Countries and its allies (OPEC+) are expected to maintain output cuts at a meeting on Friday (Aug. 4). OPEC+ is unlikely to adjust its current oil production policy, with Saudi Arabia expected to extend a voluntary production cut of 1 million barrels per day for another month until September.
“With oil prices rising steadily over the past month, a pullback is ripe and prices could fall further, although oil markets will remain tight in the near term,” said OANDA analyst Edward Moya.
Data released by the U.S. Energy Information Administration (EIA) on Wednesday (August 2) showed that U.S. crude oil inventories fell by a record 17.049 million barrels last week as refineries stepped up production and exports exceeded 5 million barrels per day. The drop was far more than analysts’ expectations of 1.367 million barrels, indicating that global demand outstripped supply as major producers continued to cut production sharply.
In China, the world’s second-largest oil consumer, government policies to boost the economy have also provided some support for prices and fuel demand. China also reported on Thursday that services sector expansion accelerated in June, offsetting disappointing manufacturing data earlier in the week.
On the daily line, NYMEX crude oil fell below $79.13, and may further drop to $78.11 in the market outlook. They are the 38.2% Fibonacci retracement level and the 50% Fibonacci retracement level of the upward range from $73.78 to $82.43 .
2023-08-03 07:40:00
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