• WTI crude futures on track for a second consecutive weekly decline, hovering around $71 per barrel, as concerns about demand persist.
• Economic uncertainties in China and the possibility of further interest rate hikes by major central banks contribute to the cautious outlook for crude oil demand.
• Oil prices experienced a sharp drop after reports of a temporary nuclear agreement between the US and Iran, allowing for potential resumption of Iranian oil exports, although the report was later denied.
• Saudi Arabia’s announcement of a planned production cut of 1 million barrels per day in July, aiming to support crude prices, adds to the dynamics influencing the market.

Crude oil experienced a marginal decline of around 0.3% during the opening of the New York trading session, trading at approximately $71.13. The market currently presents a balanced outlook, with a mixed median-term perspective and a slight inclination towards the upside due to negative volatility.

The volume profile indicates a p-shaped structure on a weekly basis, highlighting potential selling interest near the Point of Control (POC). In the current session, market calculations suggest a downward trajectory, providing an opportunity to establish core long positions.

It is worth noting the upcoming rollover to the next month’s contract, which is expected to maintain a balanced market with a slight downside bias in the median-term perspective. The current front-month contract is viewed with a slightly bullish sentiment.

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