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• WTI crude futures stabilize above $74 per barrel on Tuesday as US oil supplies show signs of tightening, with data indicating a projected drop in US shale oil production to around 9.4 million barrels per day in August, marking the first decline since December.
• Oil prices faced a 2% loss in the previous session due to concerns over weaker Chinese economic growth, which raised apprehensions about demand from the world’s leading crude importer.
• The Chinese economy expanded by 6.3% in the second quarter, falling short of expectations, reflecting slowing demand from both domestic and international sources.
• Two out of three Libyan oil fields, previously shut down, resumed production on Saturday evening, adding 370,000 barrels per day of output capacity back into the market.
• Brent crude futures stabilize near $79 per barrel, mirroring the trends in WTI crude, amid tightening US oil supplies and ongoing concerns regarding Chinese economic growth.

When analyzing the daily interval of Crude oil WTI, we can observe trading behavior within the Year’s developing VWAP. There are potential supportive buyers around the developing VWAP as the market retraces from potential long liquidations and shows signs of absorption. Meanwhile, core buyers may add to their long positions.

The volume profile from the prior day indicates a b-shaped structure with a potential bullish inclination for this particular session. The target is set at the swing highs, which could lead the market to establish a balanced price range where traders rely on extremes to determine rotational scenarios. Examining the weekly profile structure, we can observe a refilling around the current low volume areas, providing support for buyers to reach the upper one as a target.

2 Months Ago

In the short term, there may be indications of potential selling due to absorption above the intraday’s swing highs, which would align with the prior VWAP close level.

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