2024: OIL DEMAND CONCERNS

The complex interplay of geopolitical events, economic data, and market dynamics are influencing oil prices.

A COMEBACK FOR CRUDE

A consolidation within $70 and $74 is required for oil prices to sustain a breakout in any direction.

SHARP FALL FOR OIL

Speculative sentiment, currently at a low, suggests potential movement toward the low $90 range. Short-term indicators remain neutral to bearish, requiring further patience amid ongoing fall in the oil market.

OIL BULLS HOPEFUL OF SUPPLY CUT

Oil prices are likely to remain under pressure in the near term due to concerns about worsening demand and ample supply. However, the outcome of the OPEC+ meeting on Sunday could significantly impact market prices.

MARKET FOCUS THIS WEEK

The dynamics in equity markets, coupled with economic indicators, interest rate, energy and precious metals outlook, present a complex situation requiring vigilant monitoring in the week ahead.

OIL : RISK PREMIUMS OFF

Some oil traders view the Israel-Gaza conflict as a significant political event that has yet to demonstrate any tangible risks to the oil trade. Applying a daily war premium to oil due to this situation is seen by some as unwarranted.

OIL RETESTS UP TREND

Overall the Fed remains hawkish keeping rates high to control inflation and simultaneously make sure the economy stays strong.

TOUGH FIGHT FOR OIL BULLS

Despite a positive outlook for oil price due to production cuts and supply constraints, rising inflation will throw a spanner in the works for oil bulls. The path to $100 may not be an easy upward climb.

CONFLICT IMPACT ON USD

Current events underscore the intricate relationship between geopolitical events, key economic data, and the USD’s role as a safe-haven currency. As the Israel-Hamas conflict unfolds, market participants brace for potential shifts in the currency landscape. While acknowledging that rates may not have peaked, especially considering the upward pressure on inflation fueled by the geopolitical turmoil.