The fall in oil continues during the beginning of the US session

• Oil (WTI) is trading around $80 a barrel within the mid-zone of last week.
  Dollar moves lower ahead of Friday’s Jackson Hole symposium.
• The weekly API figures could push prices higher in the event of a further drawdown in US reserves.

Oil prices fall and monopolize a new daily low at $79.70, with the American session just around the corner and waiting for the main event of the weekend. That main event is the Fed’s annual symposium in Jackson Hole, where on Friday Fed Chairman Jerome Powell will take the stage and announce any possible changes to his monetary policy. Hints or hints of rate cuts ahead of schedule would boost economic growth and demand for oil, leading to a sharp rise in prices on Friday.

A decline could be just around the corner if Fed Chairman Powell clings to concerns about a resurgence of inflation and the need to keep rates high for longer. A longer period of higher rates High prices could dampen economic growth and curb demand for oil. As always on Tuesday, the American Petroleum Institute will publish the weekly report on Crude Oil values ​​at 20:30 GMT.

At the time of writing, Crude Oil (WTI) is trading at $79.70 per barrel and Brent at $83.78.

Oil news and movements in the markets

• The Dollar Index broke below vital support, and is now reversing into the green ahead of the American session.
• The current negative oil spread is fueling Asian interest in buying US barrels.
• China extends tax break for foreign investors in crude oil futures.
• On Tuesday afternoon, at 20:30 GMT, the American Petroleum Institute will release weekly Crude Oil stock figures. There are no expectations, but last week’s number was a big draw of -6.195 million barrels.
• Overnight figures showed Chinese LNG imports in July rose 24.3%.
• Iraqi supply could increase and flood the markets, limiting any rebound in oil prices. OPEC countries will not meet again until early November to discuss current oil prices and production levels.
• They report that the Strait of Panama is closed due to low water levels, which has caused a cessation of the passage of ships and containers through the important commercial passage.
• Indian Crude Oil and LNG imports declined in July.
• Global concern over the failure of China’s reopening narrative could lead to lower demand throughout the year, as China has been unwilling to boost its post-crisis growth and recovery.
• Tropical depression heading for Texas could strengthen before landfall.
• All eyes are on Friday, when Jackson Hole’s annual symposium will be the focus of the week. In it, the US Federal Reserve tends to signal a change in its monetary policy going forward.

Oil Technical Analysis: Nothing to see here

The oil price is right where it needs to be right now, with demand and supply in a good place ahead of the Jackson Hole event on Friday. On the one hand, lower demand from China and the arrival of more Iraqi barrels on the market are curbing any potential upside, while a tropical depression hitting the Texas area could cause short-term production shortages in the US. ., limiting any sharp decline in oil price action. The Jackson Hole Symposium and Jerome Powell’s speech could move the needle on that equation and see the RSI break through the 50 level to either be overbought or oversold.

To the upside, $81.68, the high on Monday, is what needs to be broken to trigger a small uptrend. If WTI continues its trend of higher lows and highs, the pressure could build towards $82. To set a new monthly high, it would have to break $84.32, the high in mid-August, when demand takes over and supply cannot follow suit.

To the downside, a temporary bottom is forming around $78.50. That is where the August buyers stepped in and pushed the price of oil back towards $80. Should support be broken, expect a sharp drop towards $76, where the 200-day moving average (SMA) comes into play. Many buyers will be happy to lock in that price with a higher purchase volume.

WTI US OIL (Daily Chart)