Crude oil fell by about 0.7% and trades around $89 while the market found supportive buyers around the lower extreme of the current balanced price range on the hourly interval. The price may target the swing highs for absorption purposes as the market is supported by the Year’s lower value extreme which is confluent with the decade’s upper standard deviation level. Slow demand and supply boosts pressured the oil price lower in the prior weeks. Meanwhile, the Iranian nuclear deal 2015 is about to revive which might boost the Iranian oil export with about 2.5 million bpd. Fears about an economic slowdown by the monetary tightening and interest rate hikes might be additional selling factors. Elsewhere, the Sichuan province keeps up with industrial power cuts because of the recent electricity shortage and the heat waves which are overheating the network in some regions of China.
Money managers were increasing the net selling side with about 13,380 contracts with combined long liquidations and newly opened short positions on the Futures & Options market. Forecast of the developing price of the oil pointing to the upside for the moment, according to calculations and analyst estimates.
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