Oil prices changed course and attempted a recovery in the Asian trades, after having slumped 3% on bearish monthly reports from both the IEA and OPEC.
On Tuesday, oil prices rallied 3% after both the EIA and OPEC made downgrade revisions to their global demand forecasts, while also pointing out that the global crude oversupply could persist for much longer than expected. EIA advised that increasing supply along with a sharp reduction in demand will create a saturation of oil in the market at least until June 2017, which is in contrast to last month when the agency noted that supply would fall by the end of the year.
Mr. Eugene Weinberg, head of commodities strategy, commented "It seems that the situation deteriorated strongly or significantly in the eyes of OPEC, as well as the EIA." He also added that he wont be surprised to see a weakness in the price continue for a while right now, because such news was not on the cards in our opinion.
Oil prices still remain under pressure, and all the mentioned data are taken into consideration, but let's keep one idea in our mind, oil price is also subject to geopolitics.
Trend: Downward , intraday 45.18 which is below H5 Pivot point (45.24)
First Support S1 44.83, any break below S1 will trigger a more drop into 44.52, S3 43.95, S4 43.30
First resistance: R1 45.57, R2 46.13, R3 46.56, R4 47.53
Remark: Eyes focused on economic calendar today at 3:30 PM GMT where Crude Oil Inventories which will set the course for Oil price.
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