US hurricane has subsided, market balancing
Yesterday, the US crude oil price was once under pressure after opening higher, following the downgrade of Hurricane Ida to Class 1, to touch a daily low at $67.62. Earlier, offshore oil platforms, oil and gas transportation pipelines, and oil refineries in the Gulf of Mexico were all forced to shut down. However, during the US season, Oil could recover most of the daily decline to close at $69.00.
In terms of economic events, market participants will also focus on the OPEC+ meeting on Wednesday. Before the main meeting, OPEC + Joint Technical Committee (JTC) and OPEC + Joint Ministerial Supervisory Committee (JMMC) will also hold meetings on Tuesday and Wednesday, respectively. According to their challenging agreement of last month, the member states have agreed to increase production by 400,000 barrels per day starting in August. With the current plan, it is expected that they reach their pre-pandemic production level in September next year. However, with the pandemic situation and its latest wave, it is a bit hard to accept that they make any changes in production level.
On the other hand, today later, and tomorrow, we will have API and EIA Oil inventory data, that should not be ignored.
From the technical point of view, in the mid-term chart, Oil again moving in a clear uptrend. OBV trend line is slowly increasing, price in the chart is increasing and RSI at 58, all supporting the soft uptrend. 67.15 is the pivot point, first resistance sitting at $69.34 and first Support sitting at 65.52.