Although crude prices have recently faced challenges, buying pressure prevented a fall to lower than $80. Technical indicators show potential for a bounce upward, with the focus on key resistance levels.
Crude prices are supported by fundamental factors like rate cut expectations, US stockpiles, and Canadian wildfires.
On Thursday, crude prices were challenged until buying pressure during the North American session prevented crude oil from falling to lower than the psychological 80.00 level.
Crude is currently on track for the third straight week of losses unless a bullish tone persists through today, which may result in oil finishing the week with slight gains or flat.
Brent losses were outpaced by WTI this week. This may partly be due to downward pressure on WTI due to output fears in Canada. Canadian wildfires have resulted in some producers reducing production at a period of peak demand in both Canada and the US.
June’s decline of 8.1% in oil demand in China to 13.66M bpd rattled market participants and pushed growth worries to the forefront. This week, the Chinese authorities did however reduce interest rates in an effort to ensure the Government’s economic targets are met.
Hopes for a ceasefire in the Middle East are increasing despite ongoing punitive attacks between the Houthis, Hezbollah, and Israel.
