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WTI and Brent Crude Futures:

• WTI crude futures steadied above $75 per barrel, with a slight weekly gain, as investors analyze the oil market’s second-half outlook.
• China’s commitment to stimulate consumption boosts oil prices, while Russia’s planned export cuts add further support.
• Expectations of nearing the end of the current monetary policy tightening cycle contribute to bullish sentiment.
   

Supply and Inventory Data:

• Russia’s energy ministry to cut oil exports by 2.1 million tons in Q3, aligning with 500,000 barrels per day export cuts in August.
• US crude inventories decline by 708,000 barrels, surpassing market expectations for a larger 2.4 million barrel drop.

Analyzing the volatility across various intervals, we observe a negative bias, which could have a bullish effect on the oil price. The weakening dollar should act as a supportive factor for Brent Futures, while WTI might be bolstered by the higher dollar of the week as the US became a net exporter.

In the prior volume profile on the WTI contracts, we can identify a p-shaped bullish structure, with the market opening above the POC and targeting the upper extreme of the current balanced price range on the daily interval. Traders are relying on the extremes to determine rotational scenarios.

2 Months Ago

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The Year’s upper value extreme, standing around $78.60, could be a target for core long positions. However, absorption around this area might benefit core sellers in the market.

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