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Market News NYMEX crude oil looks at $70.12 in the market outlook

NYMEX crude oil looks at $70.12 in the market outlook

On September 2, international oil prices weakened. As many refineries in the United States, the world's largest crude oil consumer, were still in shutdown, OPEC+ maintained the current pace of increasing production. However, the decline in US crude oil inventories last week limited the decline in oil prices. The outlook for NYMEX crude oil is $70.12.

LEO
2021-09-02
8829

On Thursday (September 2), international oil prices weakened. Many refineries in the United States, the world's largest crude oil consumer, were still in shutdown. OPEC+ maintained the current pace of increasing production. However, the decline in US crude oil inventories last week limited the decline in oil prices. The outlook for NYMEX crude oil is $70.12.

GMT+8 13:58, NYMEX crude oil futures fell 0.42% to 68.30 US dollars / barrel; ICE Brent crude oil futures fell 0.38% to 71.32 US dollars / barrel.


The Organization of the Petroleum Exporting Countries and other oil-producing countries (OPEC+) including Russia agreed on Wednesday (September 1) to continue to implement the policy of phasing out record production cuts-increasing the monthly supply to the market by 400,000 barrels per day .

However, OPEC+ has raised its demand forecast for 2022 and is also facing pressure from the Biden administration in the United States to accelerate production. The Biden administration stated that it is "very pleased" that OPEC+ has reiterated its commitment to increase supply.

Bjornar Tonhaugen, head of oil market at Rystad Energy, said in a research report: "What is not certain is...considering the new lockdown measures to combat the unresolved risk of transmission of the new crown variant strain, whether the demand can be as expected by OPEC+ and the market. Rapid growth."

After Hurricane Ida swept across Louisiana in the United States, it may take several weeks for local refineries to restart production. Operators face power and water shortages, which may curb demand for crude oil. The U.S. offshore energy production regulator said that there are still about 1.4 million barrels per day of crude oil production at a standstill.

The U.S. Energy Information Administration (EIA) said on Wednesday that despite the increase in the number of new crown cases nationwide, crude oil inventories fell by 7.169 million barrels as of August 27, a drop far exceeding the expected 2.927 million barrels; gasoline inventories also exceeded It is expected to decrease by 1.732 million barrels.

On the daily chart, U.S. crude oil is in an upward ((3)) wave starting from $61.74, and the near-term target at the top is at $72.03, the 14.6% target. On the hourly chart, oil prices have started a three-wave upward trend from US$67.13. The market outlook is expected to rise above the 38.2% target of US$70.12, and further rise to the 61.8% target of US$71.96.

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