Pre Open US - US Oil 1 Aug 2023

Oil near 3-month highs as tight supply and second-half demand growth takes center stage. West Texas Intermediate crude futures at $81.53, down 27 cents from its highest settlement since April 14. Analysts warn of potential correction risk due to overbought markets. A positive outlook emerges as central banks boost confidence in major economies. US fuel demand is at its highest level since August 2019, while China seeks to boost recovery momentum. Eurozone manufacturing contracts in July, OPEC+ meeting to discuss supply cuts. BP's chief predicts a strong outlook for oil prices in the coming months and years. All those factors are affecting right now Oil price, but the supply side continues to be the most influential factor from them all.

WTI crude oil was corrected from the $82 level, and the next support could be around the $80 area. The long-term trend remains bullish, and the next challenge will be breaking the historical resistance level at $82.60 in December 2022.