BRENT CRUDE OIL IS TRAPPED BETWEEN RECORD LOW INVENTORIES AND WEAKENING DEMAND ⚡
The current market structure for Brent is undeniably bearish, characterized by a persistent series of lower highs and lower lows. However, we are approaching a critical inflection point as Cushing inventories hit 2014 lows, creating a massive supply-side discrepancy that the current price action is failing to account for.
With the RSI sitting below 35 and the Stochastic oscillator buried near 6, downside momentum is showing signs of exhaustion. We are currently observing a tug-of-war between Chinese demand contraction and critical physical supply shortages. Do you expect a supply-side shock to force a reversal or will demand concerns drive us to the high 60s?
Not financial advice. Always manage your risk.
#Brent #Commodities #MarketAnalysis #Oil #Trading
The current market structure for Brent is undeniably bearish, characterized by a persistent series of lower highs and lower lows. However, we are approaching a critical inflection point as Cushing inventories hit 2014 lows, creating a massive supply-side discrepancy that the current price action is failing to account for.
With the RSI sitting below 35 and the Stochastic oscillator buried near 6, downside momentum is showing signs of exhaustion. We are currently observing a tug-of-war between Chinese demand contraction and critical physical supply shortages. Do you expect a supply-side shock to force a reversal or will demand concerns drive us to the high 60s?
Not financial advice. Always manage your risk.
#Brent #Commodities #MarketAnalysis #Oil #Trading