BRENT CRUDE OIL - USOIL could consolidate as it approaches 78.00 - 07/17/2024 (GMT)

Technical Perspective:
USOIL pared recent gains as it reversed below the 84.00 resistance, with
the price approaching the 78.00 support. If USOIL rebounds above the
78.00 support, the price could extend its rally to restest the 84.00
resistance again. Beyond that, a breakout of the 84.00 resistance could
prompt a further rise, with 86.00 as the next potential resistance.
Conversely, if the bearish momentum persists, with a break below the
78.00 support, a further retracement towards the 72.00 support might
occur.

Fundamental Perspective:
Oil prices steadied after a recent decline, supported by a reported 4.4
mln barrel drop in US weekly crude oil inventories, according to the
API, indicating tightening supply.
Meanwhile, supply constraints from OPEC+ production cuts, geopolitical
risks, and Hurricane Beryl's impact could limit further declines in oil
prices.
However, market sentiment remains cautious due to weak demand from
China, the world's top oil importer, amid an economic slowdown.