Are Crude Oil Prices at Its Bottom?

The price of oil continued its slump last week, with prices almost touching lows of $80.

Crude oil has since rallied and is trading at $88 after expectations that the US government will rebuild its strategic petroleum reserves.oil prices chart 15 sep

Weekly Oil Chart

Oil on the weekly chart has resistance at the $92.50 and $98 levels in the near term.

Crude oil prices were boosted by the latest comments from the International Energy Agency (IEA) on Wednesday, which said that demand would rebound strongly next year as China exits lockdowns.

The agency also expects growth in air travel to boost demand for jet fuel, while it does not see a large headwind from the economic slowdown in developed countries. The IEA has forecasted demand growth this year of 2 million barrels per day (bpd).

Despite pressure from economic growth, the IEA added that the switch from gas to oil for power in some regions will add a 700k bpd boost in the fourth quarter. For 2023, the oil market is set to see growth of 2.1 million bpd due to a rebound in China.

The latest projections helped to offset the expectation of a 2.7% fall in Chinese demand this year. This year could see the first yearly decline in Chinese oil demand since 1990.

Oil saw further support on hopes that the US would start to repair its depleted stockpiles, which are almost at 40-year lows. The US released 180 million barrels to counter the spike in inflation, and officials close to the administration told Reuters that the country could start buying oil at $80 per barrel.

Crude was under pressure on Tuesday due to the second week of higher oil inventories in the United States. The American Petroleum Institute (API) reported a 6 million barrel increase in US inventories for the week to September 9. That was much higher than analysts’ expectations for a decline of 0.2 million barrels and added to last week’s 3.6 million gains.

Recent News
Start Trading Now !

Try our demo account for free to learn trading. When you’re ready, switch to a live account and start trading for real.

Popular posts

ATFX

The Firm has taken the decision to cease providing services to retail clients, with immediate effect. We are therefore unable to accept any applications.

Services to professional clients will not be impacted. For professional applications please contact [email protected]

ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://www.atfx.com/ar/ to proceed.
ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://www.atfx.com/en/ to proceed.

ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://atfxgm.eu/en/ to proceed.

ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://www.atfx.com/en-au/ to proceed.

ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://www.atfx.com/ar/ to proceed.
ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://www.atfx.com/en/ to proceed.

ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://www.atfx.com/en-za/ to proceed.
ATFX

Restrictions on Use

Products and Services on this website are not suitable for Hong Kong residents. Such information and materials should not be regarded as or constitute a distribution, an offer, solicitation to buy or sell any investments.

使用限制: 本網站的產品及服務不適合香港居民使用。網站內部的信息和素材不應被視為分銷,要約,買入或賣出任何投資產品。

ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://atfxgm.eu/en/ to proceed.

ATFX

Restrictions on Use

AT Global Markets (UK) Limited does not offer trading services to retail clients.
If you are a professional client, please visit https://atfxconnect.com