Author: Sir Amar – Technical Analyst
Oil prices fall to a fresh weekly low of $114.60 after an unexpected rise in US inventories and crude could see another decline in the coming days if it fails to defend June’s opening range. Oil prices eased slightly on Friday as concerns about global economic growth and uncertainty weighed on markets following a series of rate hikes around the world this week. Oil prices appeared on track to test the yearly high of $130.50 after breaking May’s high of around $119.98 earlier this month, but the rise from the June low ($111.20) might fall apart further.
It looks like developments out of the US will weigh on oil prices as crude inventories rise for a second week. Signs of slowing demand could encourage the Organization of the Petroleum Exporting Countries (OPEC) to keep the current production schedule after it decided July production would be adjusted upwards by 0.648 million barrels a day, and it remains to be seen whether the group will do so will follow a predetermined program. far into the future as US production surges to the highest level since April 2020.
Central banks across Europe raised interest rates on Thursday, some by amounts that shocked markets, and pointed to even higher borrowing costs in a bid to curb runaway inflation that is eroding savings and hurting corporate profits. The moves followed a 75-basis point rate hike by the US Federal Reserve this week, the highest since 1994.