Technical Analysis:
US OIL is trading around 78 and we have imbalances below those price need to full before going bullish. We might see price price either retracing to the upside first and then falling towards FVG or price might fill the FVG below and then move to the upside.
Fundamentals:
Crude oil prices eased amid an uncertain political backdrop in the U.S., but the prospect of supply disruptions helped contain losses, ANZ Bank said in a Tuesday note.
After seeing losses in the previous session, Brent crude gained 0.3% to US$82.66 per barrel and West Texas Intermediate crude rose 0.2% to US$78.56/b at last look early Tuesday. Markets are contemplating what a Trump White House would mean, the bank noted.
In his first term, the former president encouraged the U.S. oil industry to pump as much oil as possible, but he could also ultimately support stronger demand, ANZ Bank said. Any removal of energy transition policies introduced by Joe Biden would bolster demand for fossil fuels in the medium term.
Meanwhile, large wildfires in Alberta, Canada, are within 10 kilometers of more than 380,000 barrels per day of production. An uptick in Chinese buying could also provide price support, the bank said.
Chinese refiners have boosted spot purchases of Middle Eastern crude for arrival in September and October. Beijing has also planned a new round of stockpiling in its strategic reserves.
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