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Market News NYMEX crude oil market outlook is expected to rise to 74.26 US dollars

NYMEX crude oil market outlook is expected to rise to 74.26 US dollars

On September 17, international oil prices weakened as more supplies were restored in the Gulf of Mexico after two hurricanes. However, the recovery of production capacity seems to be lagging behind demand, and the two major contracts are expected to achieve a weekly increase of about 4%. NYMEX crude oil market outlook is expected to look at 74.26 US dollars.

2021-09-17
10436
On Friday (September 17), international oil prices weakened as more supplies were restored in the Gulf of Mexico after two hurricanes. However, the recovery of production capacity seems to be lagging behind demand, and the two major contracts are expected to achieve a weekly increase of about 4%. NYMEX crude oil market outlook is expected to look at 74.26 US dollars.

GMT+8 13:46, NYMEX crude oil futures fell 0.30% to 72.39 US dollars / barrel; ICE Brent crude oil futures fell 0.28% to 75.46 US dollars / barrel.


The two major contracts are expected to climb about 4% this week. ICE Brent crude oil is close to a seven-week high, and US crude oil is also close to a six-week high, as Hurricane Ida and Tropical Storm Nicholas successively "visited" the Gulf of Mexico. As of Thursday (September 16), two and a half weeks have passed since Hurricane Ida hit, and about 28% of the local crude oil production is still suspended.

Commonwealth Bank of Australia (CBA) commodity analyst Vivek Dhar said: "The time required for production to recover is still longer than people think. This has always been a supporting factor for the market, and we will enter a more serious (supply) shortage situation- The market seems to think so obviously."

The US Energy Information Administration (EIA) released preliminary data showing that US crude oil exports in September had fallen from 3 million barrels per day at the end of August to between 2.34-26.2 million barrels per day.

Dhar also pointed out that data from the International Energy Agency (IEA) this week showed that the Organization for Economic Cooperation and Development (OECD) oil inventories fell to a low point in November because the recovery in fuel demand is expected to exceed supply. The risk of weakening demand in Southeast Asia has diminished, as the number of new crown cases in countries such as Indonesia, Malaysia and Thailand seems to have reached a peak.

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, oil prices are in three upward waves starting from 67.58 US dollars. The market outlook is expected to rise above the 76.4% target of 73.55 US dollars, and further touch the 85.4% target of 74.26 US dollars.
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