In the European session on Tuesday, both U.S. and Brent crude oil prices continued to fall, with WTI crude oil falling to $67 per barrel, falling 1.81% during the day; Brent crude oil approached $70.53 per barrel, down more than 1%.
Axel Rudolph, senior technical analyst at IG, noted that WTI crude oil prices remain under pressure for both fundamental and technical reasons and could reach the $64.00 to $62.00 area.
WTI crude oil futures fell about 8% last week. Growing market concerns about slowing economic growth in major global economies such as the United States, Asia and Europe, coupled with ample crude oil supplies, caused WTI crude oil prices to fall to June 2023 levels.
Disappointing U.S. employment data released a weak labor market signal, and European economic data that was worse than expected exacerbated concerns about energy demand. In addition, Bank of America lowered its 2025 price forecast for Brent crude from $80.00 per barrel to $75.00 per barrel and its WTI crude oil price forecast from $75.00 per barrel to $71.00 per barrel.
Saudi Aramco's cut to its official selling price for October pointed to weak demand in Asia. Hopes for a ceasefire between Hamas and Israel, though seemingly fading, also weighed on prices.
OPEC+'s initial plan to increase production despite ample supplies also weighed on prices, but prices stabilised after the group decided to delay a 180,000 bpd increase until December.
"The tone of the oil market remains pessimistic and fundamental headwinds should persist," said Julius Baer, an analyst at Julius Baer Bank. "With demand partially stagnant and production growing in the Americas, the oil market is likely to see an oversupply next year."
Ben Luckock, head of oil at Trafigura Group, one of the world's top traders, warned that Brent crude prices could fall to around $60 "relatively soon."
On the other hand, the failure to bridge the ceasefire agreement between Israel and Hamas has raised doubts about whether the Biden administration can broker a deal. For now, this and potential supply risks from hurricanes are supporting market sentiment. After all, the U.S. Gulf Coast region accounts for 60% of the country's refining capacity.
The article is forwarded from: Jinshi Data
