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Market News NYMEX crude oil market outlook looks at $73.39

NYMEX crude oil market outlook looks at $73.39

On November 23, international oil prices fell, reversing the previous day’s gains, due to increased rumors that the United States, Japan and India would release crude oil reserves to stabilize oil prices, although there is a threat of weakening demand due to a new wave of outbreaks in Europe. The outlook for NYMEX crude oil is $73.39.

2021-11-23
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On Tuesday (November 23), international oil prices fell, reversing the previous day’s gains, due to increased rumors that the United States, Japan and India will release crude oil reserves to stabilize oil prices, although there is a threat of weakening demand due to a new wave of epidemics in Europe. The outlook for NYMEX crude oil is $73.39.

GMT+8 14:16, NYMEX crude oil futures fell 1.13% to 75.88 US dollars per barrel; ICE Brent crude oil futures fell 0.83% to 79.04 US dollars per barrel.


Both markets rebounded by 1% overnight, due to reports that if major consumer countries release crude oil from their reserves, or the epidemic suppresses demand, the Organization of the Petroleum Exporting Countries and its allies (OPEC+) may adjust their production increase plans. A source familiar with the Biden administration said that the U.S. Department of Energy is expected to announce on Tuesday that it will coordinate with other countries to lend oil from the Strategic Petroleum Reserve.

However, since the discussion of the simultaneous release of crude oil has successfully brought the price back below US$80 per barrel, it is expected that the actual oil release will only have a short-term impact. Analysts are turning their attention to the potential impact of the fourth wave of COVID-19 in Europe on oil demand.

Rystad Energy analyst Louise Dickson said European road and aviation fuel demand in November is expected to fall from 8.1 million barrels per day in October to 7.8 million barrels per day, although part of it is the normal seasonal decline at this time of the year.

Dickson pointed out: “As Europe, especially Eastern Europe, strives to prevent the spread of the new crown virus, the risk of implementing similar lockdown measures is very high. If Europe issues a new wave of lockdown orders, then oil prices will not be able to be used for the rest of the northern hemisphere flu season. Spared."

On the hourly chart, NYMEX crude oil was in a downward y wave that started from 84.96 US dollars. It fell below the 138.2% target of 75.08 US dollars, and the lower support looked towards the 161.8% target of 73.39 US dollars. The y wave is a sub-wave of the adjustment (2) wave that started at $85.41. (2) The wave is a sub-wave of the upward ((3)) wave that started from $61.74.
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