Overview
Oil prices fell on Monday due to China’s economic instability and a strengthening currency, contrasting with the optimistic outlook on American economic health.

China’s Economic challenges
China faces economic challenges due to slow recovery and US dollar dominance, causing a threat to oil demand and raise prices for foreign customers using other currencies.

American economic optimism and OPEC+’s influence on the oil market remain positive despite bearish signs from China and the eurozone. OPEC+, including Saudi Arabia and Russia, is reducing oil output to counterbalance supply. IEA data suggests shrinking inventories may push oil prices higher.

American economic optimism and OPEC+’s influence on the oil market remain positive despite bearish signs from China and the eurozone. OPEC+, including Saudi Arabia and Russia, is reducing oil output to counterbalance supply. IEA data suggests shrinking inventories may push oil prices higher.

Russian destroyers clash with cargo ships in Black Sea, escalating geopolitical tensions between Russia and Ukraine. US oil rig operations remain steady despite a positive economic outlook, possibly reflecting a more conservative production approach.

Momentary Forecast
China’s economic difficulties and strong US dollar pose bearish risks, but OPEC+’s approach may outweigh them. Unexpected geopolitical developments may cause volatility. Market moves cautiously, waiting for definitive signals.

The modest drop in the price of crude oil from 83.04 to 82.40 indicates a bullish trend. However, its placement close to the boundary of the resistance zone and below the 50-4H moving average suggests short-term negative pressures. The 14-4H RSI confirms slowing momentum, but it is not oversold. Due to the closeness to the resistance zone and the decline below the shorter-term moving average, the short-term market mood is bearish.


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