From Investing.com: 2024-06-10 06:20:00

Oil prices saw a small recovery on Monday, but concerns over non-OPEC supply and US interest rate cuts are still weighing on sentiment. Prices could revisit last week’s lows of $72.50 on WTI. US data and the Federal Reserve’s meeting this week could further impact oil prices.

Last week, crude oil prices fell due to worries about increased non-OPEC supply and weaker demand. Speculative long positions were cut, with managed funds and large speculators increasing short positions. Market response to OPEC’s extended production cuts indicates concerns about demand due to economic slowdown.

Major commodity prices plummeted on Friday due to a US dollar rally, affecting dollar-denominated commodities. Metals faced pressure from weak Chinese demand and rising copper stockpiles. The People’s Bank of China halting gold purchases and concerns over Chinese industrial metals demand added to bearish sentiment.

Recent oil prices have been driven lower by demand fears, increase in non-OPEC supply, and weak manufacturing data worldwide. The OPEC+ output cut decision failed to boost prices, causing worries over phasing out voluntary cuts amid rising non-OPEC supply. The US driving season could potentially improve demand.

Oil prices face a significant resistance level between $76.00 and $76.50 on WTI. Prices staying below this zone could mean a continuation of the bearish trend. A decline towards $73.00 or below support trend might occur this week. If WTI reclaims $76.00-$76.50, a bullish trend may emerge.



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