Weaker US and Chinese data pushed down crude oil prices in recent weeks, while the dollar strengthened against major currencies. While OPEC+ resisted US calls to expand supplies faster, it held steady at a high price of $75 per barrel. The downward trend is expected to continue and investors are seeking a safe haven in the dollar. As a result, the pound fell to its lowest level since January.
Weaker Chinese and US data weighed on energy prices. China’s retail sales were worse than expected, while the US consumer sentiment index fell to a decade low. Although crude oil prices have recovered somewhat since early August, the latest data will be crucial to determining the price of oil in coming months. If the situation persists, the Biden administration may release emergency oil reserves to stabilize the market.
On Monday, the United States and China released official data that showed that crude oil output remained at an all-time low. But this was only a short-lived high, as the demand for oil continues to grow. The IEA noted that the United States is likely to see a surplus later this year, although it’s unclear how soon. The IEA’s latest survey of oil supply shows that demand is increasing again.
The stronger dollar is pushing down crude oil prices. The weaker dollar has made the price of oil more expensive for buyers in other currencies. It is important to keep in mind that the dollar’s value is linked to the demand for oil. The United States is the largest producer of crude oil in the world. The United States and China remain the largest consumers of crude oil. But the global demand for refined products has recovered to pre-pandemic levels.
Speculative net longs are also falling. The decline in US and Chinese data has drained the confidence of investors. Traders have a hard time making decisions based on weaker data. It is a great idea to study speculative net longs, as they give a clearer picture of supply. It is possible that the price of crude oil will recover to a higher level in the coming days.
A weaker US and Chinese data have led to crude oil prices extending lower. The U.S. monthly jobs report is due later on Friday. It is likely that oil prices will fall further. A weaker US report is likely to affect global demand, which will put pressure on the prices. The weaker data will also affect the dollar’s value. A stronger dollar will boost the dollar’s price.
The global supply and demand for crude oil have increased. However, OPEC+ has been unable to meet quotas, and this has led to a tighter market. A weaker member has a tendency to buy more oil than the other. The price is much higher in the near term. And the price increases in the longer term. If the price of crude oil goes below that level, the supply is insufficient.
Weaker US and Chinese data, especially on demand and supply, have prompted a sluggish global demand for crude oil. While there are more exports of oil than demand, the price of oil will be higher until there is a strong market for the commodity. In the short term, the OPEC+ members will benefit from a higher price.
As oil demand grows, US and Chinese data is more volatile than usual. This has caused a weakening of crude oil prices. Both countries will see more volatility in the price of crude oil. The United States is the largest oil producer. The US is not OPEC’s only competitor. The U.S. has the biggest oil production capacity in the world.