Oil prices are nearing 2023 lows, at levels which have formed the basis for sideways movement over the past 18 months.
For Brent crude oil, support lies between $72.45 and $70.20 per barrel, while for US West Texas Intermediate (WTI) crude, the support range is between $67.80 and $63.69 per barrel.
This fall in oil prices can be attributed to China's economic slowdown, and recession fears in Europe and the US on the demand side, along with normalising production in Libya, and the possibility of the Organisation of the Petroleum Exporting Countries (Opec) ending its output cuts on the supply side.
Despite this, inventories have sharply declined over the past two months, according to the American Petroleum Institute (API) and the Energy Information Administration (EIA). Additionally, rising geopolitical risks are being overlooked.
Important upcoming data
In upcoming trading sessions, data on oil demand, supply, and inventories will provide a clearer view of the market and how prices react at key support levels. Data for oil traders to watch out for includes the following releases:
• 5 September: EIA weekly oil inventories
• 10 September: International Energy Agency (IEA) short-term energy outlook
• 10 September: Opec monthly oil markets report
• 10 September: US Petroleum Institute (API) weekly inventories
• 12 September: EIA oil market report
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