Oil prices fell on Thursday as concerns about the uncertain economic outlook for China outweighed expectations of tighter supplies from extended supply cuts in Saudi Arabia and Russia. The market also digested mixed data from China, with overall exports falling 8.8% in August, while crude imports surged 30.9%. In addition rising oil output from Iran and Venezuela also kept a lid on the market. However, U.S. crude oil inventories were projected to have fallen by 5.5 million barrels, providing some support to prices.
‘The price of the black gold is at a 10-month high and many analysts are disputing whether it could climb higher , there is still some room for a possible bullish continuation before we see some easing on the charts.’ said Antreas Themistokleous, market analyst at Exness.
On the technical point of view the price has performed exceptionally well for the commodity reaching a 10-month high. Currently it is testing out the resistance of the Bollinger bands while the Stochastic oscillator is in the extreme overbought levels.
On the other hand the 50 day moving average is still trading well above the 100 day moving average indicating that the bullish momentum is still going strong so a continuation to the upside in the near short term might be the prevailing scenario.