NYMEX crude oil is expected to continue to run in the range of $85-89 in the short term
On Wednesday (September 14), international oil prices weakened. Due to the unexpected rise in U.S. consumer prices in August, the market was worried that the Federal Reserve would further accelerate interest rate hikes next week, offsetting the strong demand growth forecast by the Organization of the Petroleum Exporting Countries (OPEC). benefit. NYMEX crude oil is expected to continue to run in the $85-89 range in the short term.
At 16:07 Beijing time, NYMEX crude oil futures fell 0.21% to $87.13 per barrel; ICE Brent crude oil futures fell 0.20% to $92.01 per barrel.
OPEC on Tuesday reiterated its forecast for global oil demand growth in 2022 and 2023, citing signs that major economies are doing better than expected despite headwinds such as soaring inflation. In its monthly report, OPEC said oil demand would rise by 3.1 million bpd in 2022 and 2.7 million bpd in 2023, unchanged from last month.
However, the U.S. Labor Department released higher-than-expected inflation data for August on Tuesday (September 13), and the market is worried that the Federal Reserve may further increase interest rates this month, thereby putting pressure on dollar-denominated commodities. According to the latest data from the CME Group’s “FedWatch” tool, the Federal Reserve has decided to raise interest rates by at least 75 basis points for the third consecutive time this month, and the probability of raising interest rates by 100 basis points is more than 30%.
A strong dollar and expectations of another massive rate hike by the Federal Reserve weighed on market sentiment. The U.S. is the biggest uncertainty, and if the demand outlook weakens, oil might resume its downward trajectory since the start of the summer. “
The American Petroleum Institute (API) inventory data released overnight showed that U.S. crude oil inventories unexpectedly rose by 6.035 million barrels in the week to September 9. The official US Energy Information Administration (EIA) weekly inventory data will be released at 22:30 Beijing time on Wednesday.
On the daily line, NYMEX crude oil started a downward (iii) wave trend from $97.66, and the lower support looked at the 61.8% target at $74.21. Wave (iii) is a sub-wave of the descending ((c)) wave that started at $123.68. Wave ((c)) is part of the corrective 4 wave that started at $130.50. On the hourly chart, oil prices are expected to continue to run in the $85-89 range in the short term.
