I think we need to hit previous support at 69,60 to 69,90 before any possible correction. Bulls are in control with a stunning recovery after hitting 61 at the beginning of the week!
Heating situation in Middle East, mainly in Afghanistan and its neighbours such as Iran and Pakistan are causing anxiety and uncertainty over oil market in the region. On the bear side there are new of agreements between the new Taliban regime and Iran to trade oil (Iran has sanctions but its oil still reaching many countries).
FED comments and stimulus reduction should be taken as bearish but market has not yet priced in the comments due to Shut ins in South USA (Gulf of Mexico) due to Ida storm approaching. Many evacuated from oil platforms. Expected drop of 1.1mbpd off the table for few days due to that reason.
A couple more of bearish news are the big discovery of a Shale patch in Chinese mainland and increasing rig count on the US Shale, with an output of 11.1 mbpd at the moment.
Driving season to finish officially next week after US public labor day.
OPEC meeting also to confirm, most likely, the output hike after COVID in China and other countries seems to be improving.
Price will start moving sideways soon in a range of 65 to 70 bucks I think.
Just my two cents.
Heating situation in Middle East, mainly in Afghanistan and its neighbours such as Iran and Pakistan are causing anxiety and uncertainty over oil market in the region. On the bear side there are new of agreements between the new Taliban regime and Iran to trade oil (Iran has sanctions but its oil still reaching many countries).
FED comments and stimulus reduction should be taken as bearish but market has not yet priced in the comments due to Shut ins in South USA (Gulf of Mexico) due to Ida storm approaching. Many evacuated from oil platforms. Expected drop of 1.1mbpd off the table for few days due to that reason.
A couple more of bearish news are the big discovery of a Shale patch in Chinese mainland and increasing rig count on the US Shale, with an output of 11.1 mbpd at the moment.
Driving season to finish officially next week after US public labor day.
OPEC meeting also to confirm, most likely, the output hike after COVID in China and other countries seems to be improving.
Price will start moving sideways soon in a range of 65 to 70 bucks I think.
Just my two cents.