Oil Prices Remain Under Pressure Despite Rising Middle East Tensions: Analyst Says Bearish Price Trend On Horizon
Portfolio Pulse from Piero Cingari
Oil prices remain stagnant despite rising Middle East tensions, with WTI light crude trading just under $78 a barrel. Rising geopolitical tensions involving Israel, Hezbollah, and potential Turkish intervention have not significantly impacted oil prices. Additionally, China's crude oil imports have declined, indicating a struggling recovery. Bank of America suggests a potential bearish breakout in oil prices, with a possible decline to $63-$60 per barrel by the end of 2024. The United States Oil Fund (USO) has risen 13% year to date but is down over 4% in July.
July 29, 2024 | 3:11 pm
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The United States Oil Fund (USO), which tracks WTI light crude, has risen 13% year to date but is down over 4% in July. Despite rising Middle East tensions and declining Chinese crude imports, oil prices remain flat. Bank of America predicts a potential bearish breakout in oil prices, which could impact USO negatively.
USO closely tracks the performance of WTI light crude. The stagnation in oil prices despite geopolitical tensions and declining Chinese imports suggests weak demand. Bank of America's prediction of a potential bearish breakout further indicates a possible decline in oil prices, which would negatively impact USO.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100