Logo of Phnom Penh Post newspaper Phnom Penh Post - Crude oil price still under pressure despite recent bounce

Crude oil price still under pressure despite recent bounce

Content image - Phnom Penh Post
Analysis by Golden FX Link Capital business manager Long Samnang.

Crude oil price still under pressure despite recent bounce

The price of crude oil last week fell from $68.979 to $61.850 per barrel.

On Monday this week, the price rebounded three per cent “as investor risk appetite increased and the US dollar softened”, Oilprice.com’s Tsvetana Paraskova reported.

Despite the bounce early this week, investors should in the longer term consider a selling position as the previous pressures remain. Crude is still finding it difficult to draw support and buyers as global demand has fallen with restrictions and lockdowns due to concerns over the Covid-19 Delta variant.

Fxempire.com on August 22 cited Reuters as reporting that “China, the world’s largest crude importer, has imposed new restrictions with its ‘zero tolerance’ coronavirus policy, which is affecting shipping and global supply chains. The US and China have also imposed restrictions on flight capacity”.

This brake on fuel demand and other factors should be considered for investors remaining in a selling mood.

“US President Joe Biden’s administration [has] urged OPEC and its allies [OPEC+] to boost oil output to tackle rising gasoline prices that they see as a threat to the global economic recovery.

“The request reflects the White House’s willingness to engage major world oil producers for more supply to help industry and consumers, even as it seeks the mantle of global leadership in the fight against climate change and discourages drilling at home,” Reuters reported on August 12.

As a result, “oil prices came off their peak in July, after OPEC+ announced that it would be gradually increasing supply to reverse its previous 5.8 million barrel-per-day production cuts by September 2022”, ZUU online reported on August 20.

“This latest development could not have come at a worse time for the crude oil market, as the increased supply is expected to dampen prices,” it added.

For this week’s trading recommendation, investors should look at selling crude oil at $66.168 per barrel, with the take-profit function setting at $57.777 and stop-loss at $69.444 per barrel.

Content image - Phnom Penh Post


  • Prince Norodom Ranariddh passes away at 77

    Prince Norodom Ranariddh, the second son of the late King Father Norodom Sihanouk and former First Prime Minister of Cambodia, has passed away in France at the age of 77. “Samdech Krom Preah Norodom Ranariddh has passed away this morning in France just after 9am Paris-time,”

  • Cambodia purchases 4 million Molnupiravir tablets

    Cambodia has arranged for the purchase of four million US-made Molnupiravir pills – enough to treat 100,000 Covid-19 patients – even though the current rate of daily infections in Cambodia remains low. The medicine will be distributed to state hospitals, pharmacies and private clinics, according to the Samdech

  • Rise in planned flights lifts travel hopes

    Six airlines have applied to resume flights in December, while two others have put in for additional flights and routes, according to State Secretariat of Civil Aviation (SSCA) head Mao Havannall on November 29. These account for 43 new weekly domestic and international flights in December, up 16

  • Is Cambodia’s travel sector in for another cheerless holiday season?

    The travel and tourism sector was heaving back to life as borders started to reopen, promising a festive vibe for the holidays and New Year. But Omicron and other Covid-related issues are threatening to close the year on a bleak note ‘Seems [like] Covid-19 won’

  • Cambodia, Thailand to discuss border reopening

    Cambodian authorities from provinces along the Cambodia-Thailand border will meet with Thai counterparts to discuss reopening border checkpoints to facilitate travel, transfer of products and cross-border trade between the two countries. Banteay Meanchey provincial deputy governor Ly Sary said on November 22 that the provincial administration

  • Cambodia planning new border checkpoint at Thma Da

    Cambodia is looking into the possibility of opening a new Thma Da Border Checkpoint with Thailand to boost trade and tourism. The Ministry of Public Works and Transport said on December 4 that Minister of Public Works and Transport Sun Chanthol led a technical working group