Pre Open US - US Oil 15 Aug 2023

Crude oil prices stabilized as traders evaluated the tightness of the market in comparison to China's struggling post-COVID economic recovery. Brent crude stood at $86.16 per barrel, while West Texas Intermediate crude reached $82.42/b early Tuesday.

China released data indicating heightened pressure on the economy from various angles, leading Beijing to lower key policy rates in order to stimulate activity, as reported by Reuters on Tuesday. China's central bank unexpectedly decreased one set of key interest rates and later in the day, made additional cuts to other rates, according to the report.

Supply reductions by Saudi Arabia and Russia, members of the OPEC+ group that includes the Organization of the Petroleum Exporting Countries and its allies, played a role in boosting prices over the past seven weeks.

In a more positive development, refinery throughput in July saw a 17.4% increase compared to the previous year in the world's largest oil-importing country. Refiners maintained elevated output to meet the demand for domestic summer travel and to capitalize on lucrative regional profit margins by exporting fuel.

Technically, WTI is corrected and finding support around the 100MA at the 81.30 level while the next support is at 79.00.