Yesterday, a series of dismal preliminary PMI results from Europe, the UK and the US broadcasted once again that the global manufacturing activity trends are facing hurdles, which cloud the prospects for increased demand for the commodity. Weak oil<\/strong> demand expectations have amplified the negative sentiment. The results coincide with last week\u2019s figures from China, whose Industrial Production rates were indicative of an extended deterioration in its manufacturing capabilities, which led traders to dismantle their overoptimistic bullish assessments for a WTI price north of the $83 range and instead start downsizing their positions as the momentum turned bearish. More specifically, the manufacturing activity of the US stagnated in contraction territory for the 4th consecutive month, the UK broadcasted weakness on both the services and manufacturing fronts yet again, and Germany\u2019s manufacturing activity fell to levels last seen at the start of the Covid pandemic, despite posting a better-than-expected figure. The results added negative pressure on WTI and accelerated its fall to the $78 per-barrel level. Now all eyes fall on tomorrow\u2019s Jackson Hole symposium, where central bankers convene to discuss the progress of monetary policy and the state of the economy, and traders are drawing particular attention to Fed Chair Powell\u2019s speech, searching for clues. Should the rhetoric remain hawkish, calling for more hikes for longer, we would expect to see crude\u2019s price extending its fall.<\/p>\n\n\n\n It is no secret that Middle eastern nations have been telegraphing their intents at diversifying<\/strong> their trade partnerships<\/strong> in recent years. Evidently, Saudi Arabia\u2019s posterchild relationship with the US has turned sour particularly under the Biden administration<\/strong> and the Kingdom has diverted its gaze towards the East, engaging in trade deals with the oil-thirsty China<\/strong> and now most populous nation of the world India<\/strong>. Iran<\/strong> has recently announced 67 new oil and gas projects<\/strong> which are worth at around $15 billion and aims to increase production of 3.3 million bpd by the end of August, and to reach 3.5 million by the end of September. Iran\u2019s improved oil production capabilities could come in handy in the long run, now that BRICS<\/strong> have officially invited the nation to join the alliance. Likewise, the UAE<\/strong> was also formally invited to join the \u2018global south\u2019<\/strong> and the prospects for dealmaking with the new emerging powers can bolster production and exports, shall there be an increase in demand.<\/p>\n\n\n\n WTI\u2019s price appears to be moving lower for a second week in a row. We tend to maintain a bearish outlook<\/strong> for the liquid gold, and supporting our case is the downward-moving trendline from the 10th of August, in addition to the RSI indicator<\/strong> on our 4-Hour chart currently being slightly below the figure of 50, implying slight bearish market<\/strong> tendencies for oil<\/strong>. For our bearish outlook<\/strong> to continue, we would like to see a clear break below the 78.15 (S1) support level, with the next possible target for the bears being the 75.00 (S2) support base. On the other hand, for a bullish outlook, we would like to see a clear break above the 83.20 (R1) resistance level, with the next possible target for the bulls being the 83.20 (R2) resistance ceiling. Lastly, for a neutral outlook, we would like to see the commodity remaining between the 78.15 (S1) and 83.20 (R1) support and resistance levels, in addition to the RSI indicator remaining near the 50 level.<\/p>\n\n\n\n Disclaimer: Crude is on track to end its second week…<\/p>\nBRICS, the Saudis, the Iranians and the Emirates: An oil-driven alignment<\/strong><\/strong><\/h2>\n\n\n\n
Ph\u00e2n t\u00edch k\u1ef9 thu\u1eadt<\/strong><\/h2>\n\n\n\n
WTI Cash 4H Chart<\/strong><\/h3>\n\n\n\n
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