Oil prices have maintained a steady position near two-month highs, driven by a mix of factors influencing the market. Expectations of increased fuel demand during the summer months and the potential U.S. interest rate cuts to boost economic growth have played a significant role in supporting prices. Vandana Hari of Vanda Insights highlighted that market sentiment and geopolitical fears, notably regarding tensions between Israel and Iran, as well as the impact of Hurricane Beryl, are influencing oil price movements.
The hurricane, which has emerged as a severe storm after hitting the Caribbean, poses a threat to oil production in Mexico’s Bay of Campeche. On the other hand, gasoline demand in the U.S. is anticipated to rise due to increased travel during the upcoming Independence Day holiday. However, softening demand in Asia and reduced imports by China are acting as factors tempering the gains in oil prices.
In the commodity markets, Natural Gas (NG) is currently trading at $2.46, indicating a decrease of 0.44%. The technical analysis suggests a bearish sentiment for Natural Gas at the moment, with the current pivot point at $2.46. Resistance levels are set at $2.53, $2.59, and $2.64, with immediate support at $2.42.
Moving to crude oil, USOIL is priced at $83.47, experiencing a modest increase of 0.14%. The market stance on USOIL remains bearish below $83.59, with resistance levels at $84.00, $84.28, and $84.61, and support at $83.14, $82.86, and $82.40. Similarly, Brent oil (UKOIL) is showing a modest increase at $86.78, with a pivot point at $86.86. The immediate resistance level is at $87.40, while support is found at $86.16.
Overall, the outlook for oil prices remains influenced by a combination of demand factors, geopolitical tensions, and supply concerns, making it essential for investors and traders to monitor the market closely for any further developments.
