Brent Crude – China data weighs on oil prices
<p><a href="https://api.addthis.com/oexchange/0.8/forward/facebook/offer?url=https%3A%2F%2Fwww.marketpulse.com%2Foil%2Fbrent-crude-china-data-weighs-on-oil-prices%2Fcerlam&pubid=ra-525512e4690e068c&title=Marketpulse%20%7C%20Home&ct=1" target="_blank"><img src="https://cache.addthiscdn.com/icons/v3/thumbs/32×32/facebook.png" border="0" alt="Facebook" /></a><a href="https://api.addthis.com/oexchange/0.8/forward/twitter/offer?url=https%3A%2F%2Fwww.marketpulse.com%2Foil%2Fbrent-crude-china-data-weighs-on-oil-prices%2Fcerlam&pubid=ra-525512e4690e068c&title=Marketpulse%20%7C%20Home&ct=1" target="_blank"><img src="https://cache.addthiscdn.com/icons/v3/thumbs/32×32/twitter.png" border="0" alt="Twitter" /></a><a href="https://api.addthis.com/oexchange/0.8/forward/email/offer?url=https%3A%2F%2Fwww.marketpulse.com%2Foil%2Fbrent-crude-china-data-weighs-on-oil-prices%2Fcerlam&pubid=ra-525512e4690e068c&title=Marketpulse%20%7C%20Home&ct=1" target="_blank"><img src="https://cache.addthiscdn.com/icons/v3/thumbs/32×32/email.png" border="0" alt="Email" /></a></p><ul>
<li><strong>Chinese trade data disappoints again</strong></li>
<li><strong>Saudi and Russian cuts continue to support prices</strong></li>
<li><strong>Divergence a potential red flag</strong></li>
</ul>
<p>The data from China appears to be weighing on oil prices today, which is understandable with it being the world’s second-largest economy.</p>
<p>Still, oil remains not far from yesterday’s highs, having recovered more than 20% since late June.</p>
<p>Clearly, the cuts from Saudi Arabia and Russia are working, on top of all of those implemented by OPEC+ since late last year.</p>
<p>The market now looks much tighter and the economic outlook is potentially a little brighter too, with central banks either at or very close to the end of their tightening cycles.</p>
<p><iframe loading="lazy" width="560" height="315" src="https://www.youtube.com/embed/nmMIJ83l4cU" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe></p>
<p><script src="https://apis.google.com/js/platform.js"></script></p>
<div data-channel data-layout="default" data-count="default"></div>
<p><strong>Is the oil rally running on fumes?</strong></p>
<p>We saw plenty of support between March and June around $70-$72 but the price has since rallied strongly, breaking through the descending channel and, more recently, the 200/233-day simple moving average band.</p>
<p><strong>BCOUSD Daily</strong></p>
<p><a href="https://www.marketpulse.com/wp-content/uploads/2023/08/BCOUSD_2023-08-08_21-36-09.png" target="_blank" rel="noopener"><img loading="lazy" class="aligncenter wp-image-806889" src="https://www.marketpulse.com/wp-content/uploads/2023/08/BCOUSD_2023-08-08_21-36-09-1024×436.png" alt="" width="620" height="264" srcset="https://www.marketpulse.com/wp-content/uploads/2023/08/BCOUSD_2023-08-08_21-36-09-1024×436.png 1024w, https://www.marketpulse.com/wp-content/uploads/2023/08/BCOUSD_2023-08-08_21-36-09-300×128.png 300w, https://www.marketpulse.com/wp-content/uploads/2023/08/BCOUSD_2023-08-08_21-36-09-768×327.png 768w, https://www.marketpulse.com/wp-content/uploads/2023/08/BCOUSD_2023-08-08_21-36-09-1536×654.png 1536w, https://www.marketpulse.com/wp-content/uploads/2023/08/BCOUSD_2023-08-08_21-36-09.png 1793w" sizes="(max-width: 620px) 100vw, 620px" /></a></p>
<p>Source – OANDA on Trading View</p>
<p>That’s taken it back into bullish territory, in theory, and today it’s testing that as support from above, as it did last week. A break below would be a bearish signal in the near term, while a hold above could once more reinforce the bullish nature of last month’s breakout.</p>
<p>One thing that is notable is that the momentum indicators have been weakening since mid-July which may suggest the rally has been running on fumes. This kind of divergence isn’t a bearish signal in itself but it could be viewed as a red flag.</p>
Leave a Comment