Oil Slips As Demand Outlook Remains Weak

Fundamental Analysis

* Demand Doldrums: Crude oil prices remain under pressure as ongoing concerns about weak demand continue to weigh on the market. The easing of geopolitical tensions, along with softer global demand, particularly from China has kept the outlook for oil prices tilted to the downside. While China’s government has rolled out a stimulus package to spur economic growth, the structural shift in fuel consumption is expected to limit its effect on oil demand. China’s oil demand growth is projected to stay subdued into 2025 as the country accelerates its shift to electric vehicles and its economy expands at a slower pace, according to the head of the International Energy Agency on Monday.

Technical Analysis

* Technical Breakout: Previous breakout below the support level 71.75 and bearish market structure with additional signal from MACD which signal bearish signal suggest the commodity to likely further extend its losses.

*Resistance and Support: If the bearish momentum persists, there’s a strong likelihood that the price will potentially head towards the level 67.55. Conversely, a potential reversal is also to be expected and the price could head back towards 71.75.

Understand how technical analysis can help you in this trading opportunity.

Potential Risks

Looking ahead, investors will turn their attention to key U.S. data releases this week, including Manufacturing PMI, Services PMI, and Durable Goods Orders. Additionally, developments in the Middle East will remain a central focus.

Know how to manage trading risks with risk management strategies.

Monitoring

Stay updated on US data, central bank updates and any shifts in the US Dollar’s strength by following PU Prime’s market insights and daily financial news.

Grab the trading opportunity and dive into the action risk-free with a free demo account. It is the perfect way to hone your skills and explore the exciting world of trading!

Open Your Free Demo Account And Start Trading Risk-Free

Join Now

Disclaimer: Trading derivatives involves high risks, and market conditions can change rapidly. The content is for informational purposes only and should not be considered as financial advice. Traders should conduct their own research and consider risk management strategies.