Pre Open US - US Oil 24 Aug 2023

Oil prices declined this week. Factors such as concerns about China's economic growth rate and the possibility of a US interest rate increase are pressuring oil prices. Additionally, the potential for increased production from Iran and Venezuela is contributing to negative market sentiment.

WTI and Brent benchmarks fell for the fourth consecutive day. These drops were driven by worries over China's economic recovery and the ongoing Jackson Hole Fed meeting, where insights into prolonged higher interest rates might emerge. Despite a substantial US crude draw reported on Wednesday, market attention remains fixed on these concerns.

Persistent apprehensions about the economy and increased supply risks from Iran and Venezuela, not bound by OPEC+ cuts, outweighed the notable 6.1 million barrel crude draw for the week ending August 18.

The daily WTI price movement has given rise to a head and shoulders reversal pattern. Currently, there's a breakout occurring below the critical support level at 79, driving the price towards the projected target of 77.