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• WTI crude futures climbed above $75 per barrel, reaching their highest levels in over two months, amid indications of a decrease in Russian crude output.
• Vessel tracking data reveals a substantial drop in shipments through Russia’s western ports during the four weeks leading up to July 9, signaling a delayed implementation of production cuts by the OPEC+ producer.
• The market expresses concerns over tighter supply following additional production cuts announced by top exporters Saudi Arabia and Russia for August.
• The Energy Information Administration predicts a tightening global market in the second half of the year, with expectations of stockpile drawdowns through 2024.
• US crude inventories, however, recorded an increase of around 3 million barrels last week, breaking a three-week decline and defying expectations for a drawdown.

The market experienced a rise towards the Year’s developing VWAP and briefly surpassed the balanced price range that has been present for several weeks. It is now targeting the upper value extreme, which could attract potential selling from core positions. However, absorption might occur around the current highs as the market maintains a balanced state. This indicates that investors are adjusting their risk positions in anticipation of the forthcoming inflation data, which will provide further insights for positioning decisions.

Analyzing the intraday interval, we can observe a balanced behavior where traders are leaning on the extremes to assess rotational scenarios. The extremes, namely the Developing Value Area High (DVAH) and Developing Value Area Low (DVAL) of today’s session are closely monitored. The upper distribution and its Point of Control (POC) from the previous distributions act as a supportive level for buyers.

Stay updated on the market dynamics by following the auction process of the early overnight session in this video, where you can gain valuable insights into the current market trends.

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