News that US stockpiles increased very markedly this month is probably weighing on prices. Reuters reported an increase of 9.3 million barrels of crude, citing market sources basing their views on the most recent data from the American Petroleum Institute.
Still, the market’s overall backdrop remains one of a well-supplied market meeting far-from certain demand. The prospect of lower interest rates across the industrial economies should help energy prices. But those lower rates themselves will depend on inflation coming to heel as hoped.data for the old year’s last quarter are coming up. They’re expected to have been revised lower.
There is support much closer to hand however, at $79.34. That’s the third Fibonacci retracement of the rise up to the still-unchallenged peaks of September last year from the lows of May. If that support gives way the market could be headed for deeper falls, and, perhaps, a challenge to the current overall uptrend.