Logo of Phnom Penh Post newspaper Phnom Penh Post - Oil uncertain with demand signals awaited

Oil uncertain with demand signals awaited

Content image - Phnom Penh Post
By Nhim Kosol, PPLS business manager.

Oil uncertain with demand signals awaited

Starting this week, oil traded sideways from its prior low of $82.62 per barrel to a previous high of $85.98 as traders continued to balance weaker demand prospect against constricted supplies of crude.

After trading within a narrow three-dollar range for four consecutive days, crude oil prices remained near $85 per barrel, with further demand signals awaited ahead of likely reductions in supply.

“Since late September, crude prices have been bouncing in a range of about $17 as traders weigh interest rate hikes that menace economic growth against planned output cuts from the Organization of Petroleum Exporting Countries and its allies,” Bloomberg reported.

A reduction of two million barrels per day (bpd) in crude oil production target was announced by OPEC+ early this month, angering the US.

There will be some consequences for Saudi Arabia for its decision with Russia to steer OPEC+ into a large oil production cut, US President Joe Biden said a week after the OPEC+ meeting, Oilprice reported.

And in an effort to reduce gasoline prices, the Wall Street Journal said, President Biden is ordering the release of 15 million barrels from the Strategic Petroleum Reserve (SPR) three weeks before the US midterm elections.

Meanwhile, after Beijing said it was deeply frustrated by new US export controls on chips, China signalled it may ease its strict Covid border restrictions.

The market was losing price momentum slowly in Wednesday trading sessions, with technical analysis indicating that the price of oil is still trading in the range of $84.75 per barrel, with that range above the average price over 50 days.

Market sentiment is still uncertain. Therefore, this week oil investors may trade with a buy position at $83 per barrel, setting the stop-loss function at $80.50 per barrel and the take-profit at $86.

Alternatively, they could set a sell position at $85.50 per barrel, with the stop-loss function at $87 per barrel and the take-profit at $83.

Content image - Phnom Penh Post

MOST VIEWED

  • Wing Bank opens new branch in front of Orkide The Royal along Street 2004

    Wing Bank celebrates first anniversary as commercial bank with launch of brand-new branch. One year since officially launching with a commercial banking licence, Wing Bank on March 14 launched a new branch in front of Orkide The Royal along Street 2004. The launch was presided over by

  • Girl from Stung Meanchey dump now college grad living in Australia

    After finishing her foundational studies at Trinity College and earning a Bachelor’s degree from the University of Melbourne in 2022, Ron Sophy, a girl who once lived at the Stung Meanchey garbage dump and scavenged for things to sell, is now working at a private

  • Ministry orders all schools, public and private, to close for SEA Games

    From April 20 to May 18, all public and private educational institutions will be closed to maintain order and support Cambodia's hosting of the 32nd SEA Games and 12th ASEAN Para Games, said a directive from the Ministry of Education, Youth and Sport. Cambodia will host the

  • Wat Phnom hornbills attract tourists, locals

    Thanks to the arrival of a friendly flock of great hornbills, Hour Rithy, a former aviculturist – or raiser of birds – in Kratie province turned Phnom Penh tuk tuk driver, has seen a partial return to his former profession. He has become something of a guide

  • Almost 9K tourists see equinox sunrise at Angkor Wat

    Nearly 9,000 visitors – including 2,226 international tourists – gathered at Angkor Wat on March 21 to view the spring equinox sunrise, according to a senior official of the Siem Reap provinical tourism department. Ngov Seng Kak, director of the department, said a total of 8,726 people visited Angkor Wat to

  • Angkor Beer strengthens national pride with golden new look and fresher taste

    Angkor Beer – the "Gold of Angkor" – has a new look, one that is more stylish and carries a premium appeal, as well as a fresher taste and smoother flavour, making it the perfect choice for any gathering. Angkor Beer recently launched its new design, one