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Market News NYMEX crude oil expected to rise to $73.65

NYMEX crude oil expected to rise to $73.65

On September 23, international oil prices rose, continuing the strong rise overnight. Fuel demand has increased and crude oil inventories have fallen, as production in the U.S. Gulf of Mexico is still blocked after the two hurricanes. NYMEX crude oil is expected to rise to $73.65.

Eden
2021-09-23
11290

On Thursday (September 23), international oil prices rose, continuing the strong rise overnight. Fuel demand has increased and crude oil inventories have fallen, as production in the U.S. Gulf of Mexico is still blocked after the two hurricanes. NYMEX crude oil is expected to rise to $73.65.

GMT+8 14:11, NYMEX crude oil futures rose 0.24% to 72.40 US dollars per barrel; ICE Brent crude oil futures rose 0.20% to 76.34 US dollars per barrel. Both cities hit a new one-week high, reaching 72.54 US dollars/barrel and 75.70 US dollars/barrel respectively.


Overnight, NYMEX crude oil jumped more than 2%, and Bursa oil also closed up nearly 1.6%. According to data released by the U.S. Energy Information Administration (EIA), as of the week of September 17, U.S. crude oil inventories fell by 3.481 million barrels to 414 million barrels, the lowest level since October 2018, and the decline exceeded analyst expectations.

EIA data shows that the utilization rate of East Coast refineries has risen to 93%, the highest since May 2019. This shows that with the relaxation of the travel ban, fuel demand is strong. The fundamentals of the US oil market remain constructive.

According to ANZ Research, market sentiment is also supported by soaring natural gas prices. “If the winter is colder this year, the shortage of natural gas supply may encourage power companies to switch from natural gas to oil.”

On the daily chart, U.S. oil is in an upward ((3)) wave starting from $61.74, and the recent resistance above it looks to the 23.6% target at $78.37. On the hourly chart, crude oil prices are in an upward ((iii)) wave starting from US$69.40, and are expected to rise above the 61.8% target of US$72.84, and further touch the 76.4% target of US$73.65. (iii) The wave is a three-wave upward wave that started from $67.58.

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