Technical Analysis:
US OIL is retracing back to its resistance areas of 1H, If price gives some type of confirmation to us around marked zone we can look for selling opportunities again.
Fundamentals:
Growing demand concerns due to weak economic data in the three most important oil demand regions — the U.S., China and Europe — sparked an increase in risk aversion, putting commodities such as crude oil under pressure, Commerzbank said in a Tuesday note.
Doubts are increasing as to whether oil demand will actually increase noticeably in the second half of the year, as previously expected, the bank noted.
However, there were also headwinds on the supply side. The Organization of the Petroleum Exporting Countries and allied producers' decision to postpone output hikes planned for October were only taken under the massive pressure of falling oil prices, according to Commerzbank.
The group's reluctant stance gives the impression that its members still want to boost production. The diminishing willingness to adhere to output cuts is also fueled by continued overproduction of some members such as Iraq and Kazakhstan,
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