{"id":61789,"date":"2023-05-04T16:15:25","date_gmt":"2023-05-04T13:15:25","guid":{"rendered":"https:\/\/www.ironfx.com\/?p=61789"},"modified":"2026-02-05T09:34:11","modified_gmt":"2026-02-05T07:34:11","slug":"has-the-rolldown-been-halted","status":"publish","type":"post","link":"https:\/\/www.smartchinaeducation.com\/vi\/has-the-rolldown-been-halted\/","title":{"rendered":"Has the rolldown been halted"},"content":{"rendered":"<p class=\"wp-block-paragraph\"><strong><a href=\"https:\/\/www.ironfx.co\/en\/wti-extends-decline-as-recession-worries-reignite\/\" target=\"_blank\" rel=\"noreferrer noopener\">WTI\/oil<\/a> prices<\/strong> continued to <strong>fall<\/strong> over the past few <strong>days<\/strong> with <strong>WTI<\/strong> reaching <strong>prices<\/strong> below <strong>$70<\/strong> <strong>per barrel<\/strong> <strong>yesterday<\/strong>, the <strong>lowest<\/strong> <strong>level<\/strong> in a <strong>month<\/strong>. There seemed to be some <strong>upward movement<\/strong> today, yet it still is <strong>unconvincing<\/strong> for now. As a <strong>key fundamental issue<\/strong> we note the <strong>market worries<\/strong> about a possible <strong>recession<\/strong> and thus a <strong>weakening<\/strong> of the <strong>commodity\u2019s<\/strong> <strong>demand outlook<\/strong>, yet at the same time we note that the <strong>US<\/strong> <strong>oil market<\/strong> remains <strong>tight<\/strong>. In this report, we aim to shed light on the <strong>catalysts<\/strong> driving <strong>WTI\u2019s price<\/strong>, assess its <strong>future outlook<\/strong> v\u00e0 <strong>conclude<\/strong> with a <strong>ph\u00e2n t\u00edch k\u1ef9 thu\u1eadt<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Market Worries for oil demand<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>WTI\u2019s prices <\/strong>started to <strong>drop <\/strong>once again on <strong>Monday <\/strong>and it\u2019s no <strong>surprise <\/strong>that the <strong>drop <\/strong>in <strong>oil prices coincided <\/strong>with <strong>China <\/strong>reporting a <strong>contraction <\/strong>of <strong>economic activity <\/strong>in its huge <strong>manufacturing sector <\/strong>for the past <strong>month<\/strong>. <strong>Market worries <\/strong>for the <strong>demand side <\/strong>of <strong>oil <\/strong>tended to <strong>intensify <\/strong>as <strong>China <\/strong>is a <strong>major oil consumer <\/strong>and a <strong>contraction <\/strong>of <strong>economic activity <\/strong>in the <strong>manufacturing sector <\/strong>may have a <strong>negative effect <\/strong>also on the <strong>demand side <\/strong>of <strong>oil<\/strong>. But it\u2019s not only <strong>China <\/strong>that\u2019s <strong>worrying oil traders<\/strong>. We are in for another <strong>round<\/strong> of <strong>monetary policy tightening<\/strong>, with the <strong>Fed<\/strong> yesterday <strong>hiking rates<\/strong> once again by <strong>25 basis points<\/strong> v\u00e0 <strong>Fed Chairman Powell<\/strong> in his <strong>press conference<\/strong> stating that it is \u201c<strong>not appropriate<\/strong> to <strong>cut rates<\/strong>\u201d. That would imply that even should the <strong>bank<\/strong> pause its <strong>rate hiking path<\/strong>, which the <strong>market<\/strong> already expects, it may keep <strong>rates<\/strong> at <strong>cao<\/strong> <strong>levels<\/strong> for a <strong>prolonged period of time<\/strong> contradicting <strong>market expectations<\/strong> for <strong>rate cuts<\/strong> after the <strong>summer<\/strong>. Should <strong>monetary policy<\/strong> <strong>settings<\/strong> remain <strong>tight<\/strong> that may have a <strong>cumulative<\/strong> <strong>lagged<\/strong> <strong>adverse<\/strong> <strong>effect<\/strong> on <strong>economic activity<\/strong> and hence <strong>weaken<\/strong> <strong>oil demand<\/strong>. Mind you that it is not only the <strong>Fed<\/strong> that stepped on the brakes, also <strong>RBA<\/strong> <strong>surprised<\/strong> the <strong>markets<\/strong> by <strong>hiking rates<\/strong> after <strong>pausing<\/strong>, <strong>ECB<\/strong> also <strong>hiked rates<\/strong> by <strong>25 basis points<\/strong>, while <strong>BoE<\/strong> is expected to <strong>follow<\/strong> on the <strong>same path<\/strong> next <strong>week<\/strong>. Hence, to put it mildly, the <strong>demand side<\/strong> of the <strong>economy<\/strong> seems to continue to be <strong>under<\/strong> <strong>threat<\/strong>, which may <strong>increase<\/strong> the <strong>downward pressure<\/strong> on the <strong>commodity\u2019s<\/strong> <strong>prices<\/strong>.&nbsp; &nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>OPEC\u2019s response<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">On the <strong>flip side<\/strong>, <strong>OPEC<\/strong> and its <strong>allies<\/strong>, including <strong>Russia<\/strong> seem to be <strong>implementing<\/strong> their <strong>pledge<\/strong> to <strong>voluntarily<\/strong> <strong>cut<\/strong> <strong>production<\/strong> by an <strong>additional<\/strong> 1.16 million <strong>barrels per day<\/strong> (<strong>bpd<\/strong>). It\u2019s characteristic that besides <strong>Saudi Arabia<\/strong> <strong>cutting<\/strong> <strong>production<\/strong> also <strong>Russia&#8217;s<\/strong> <strong>Deputy<\/strong> <strong>Prime<\/strong> <strong>Minister<\/strong> <strong>Alexander<\/strong> <strong>Novak<\/strong> stated today that <strong>Russia<\/strong> is <strong>keeping<\/strong> its <strong>voluntary production cuts<\/strong> of <strong>500k<\/strong> <strong>barrels per day<\/strong>, from <strong>February<\/strong> until the <strong>end of the year<\/strong>. So <strong>OPEC\u2019<\/strong>s <strong>production side<\/strong> seems to remain <strong>tight<\/strong>, yet that was already <strong>priced in<\/strong> by the <strong>market<\/strong> and with <strong>no additional production cuts<\/strong> from the <strong>oil-producing cartel<\/strong> on the <strong>horizon<\/strong>, it may play <strong>little role<\/strong> in <strong>oil price action<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>The situation in the US oil market<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The <strong>USD<\/strong> <strong>oil production<\/strong> <strong>levels<\/strong> had risen <strong>steadily<\/strong> in the first <strong>two months<\/strong> of the <strong>year<\/strong>, yet that <strong>tendency<\/strong> seemed to have been <strong>halted<\/strong>. We note that the <strong>number<\/strong> of <strong>active oil rigs<\/strong> in the <strong>US<\/strong> remains <strong>relatively<\/strong> <strong>stable<\/strong> over the past <strong>two months<\/strong>, just <strong>below<\/strong> <strong>600<\/strong>. On the other hand, we cannot <strong>miss out<\/strong> on commenting that <strong>US<\/strong> <strong>oil inventories<\/strong> have been <strong>dropping<\/strong> with <strong>API<\/strong> reporting a <strong>drawdown<\/strong> of -3.939 million barrels and <strong>EIA<\/strong> a <strong>drawdown<\/strong> of -1.280 million barrels <strong>practically<\/strong> <strong>highlighting<\/strong> the <strong>tightness<\/strong> of the <strong>US oil market<\/strong> as <strong>production levels<\/strong> were <strong>not<\/strong> able to <strong>reach<\/strong> <strong>demand<\/strong>. Yet both <strong>releases<\/strong> tended to leave <strong>oil traders<\/strong> <strong>unimpressed<\/strong> as <strong>oil prices<\/strong> <strong>continued<\/strong> to <strong>decline<\/strong> after <strong>the<\/strong> releases. Hence the <strong>US<\/strong> <strong>oil market<\/strong> <strong>tightness<\/strong> seems also to be <strong>largely priced<\/strong> in by the <strong>markets<\/strong>. Despite a <strong>halt<\/strong> in the <strong>drop<\/strong> of <strong>oil prices<\/strong> <strong>today<\/strong>, the <strong>rise<\/strong> may <strong>prove<\/strong> to be <strong>temporary<\/strong> and a <strong>mere<\/strong> <strong>correction<\/strong> should <strong>c\u01a1 b\u1ea3n<\/strong> <strong>worries<\/strong> for the <strong>demand side<\/strong> of <strong>oil<\/strong> not be <strong>lifted<\/strong> or should there be <strong>no additional<\/strong> <strong>tightening<\/strong> of <strong>oil production<\/strong>. <strong><u><\/u><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-technical-analysis\"><strong>Ph\u00e2n t\u00edch k\u1ef9 thu\u1eadt<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>WTI Cash 4H Chart<\/strong><\/h3>\n\n\n\n<figure class=\"wp-block-gallery has-nested-images columns-default is-cropped wp-block-gallery-1 is-layout-flex wp-block-gallery-is-layout-flex\">\n<figure class=\"wp-block-image size-full\"><img fetchpriority=\"high\" decoding=\"async\" width=\"624\" height=\"291\" data-id=\"61792\" src=\"\/wp-content\/uploads\/2023\/05\/xau-usd-4h-chart-04-05-2023-technical-analysis.png\" alt=\"\" class=\"wp-image-61792\"\/><\/figure>\n<\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Support: 66.50 (S1), 64.00 (S2), 61.50 (S3)<\/li>\n\n\n\n<li>Resistance: 71.00 (R1), 74.00 (R2), 77.00 (R3)<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Looking at <strong>WTI Cash 4-hour chart<\/strong> we see observe <strong>crude<\/strong> <strong>losing<\/strong> the <strong>floor<\/strong> <strong>under its feet<\/strong>, plunging to its <strong>lowest<\/strong> <strong>levels<\/strong> in almost <strong>two and a half years<\/strong>, but then <strong>quickly<\/strong> <strong>rebounding<\/strong> to the <strong>$68 per barrel <\/strong>level as traders indulged in some <strong>dip buying activity<\/strong>. We hold a <strong>bearish outlook<\/strong> <strong>bias<\/strong> for the <strong>commodity<\/strong> given the <strong>sharp drop<\/strong> and supporting our case is the <strong>RSI indicator<\/strong> below our <strong>4-hour chart<\/strong> which currently registers a value of 25, highlighting the <strong>extreme bearish sentiment<\/strong> surrounding <strong>WTI<\/strong>. We must point out however, that the move appears <strong>overextended<\/strong> and a <strong>possible correction<\/strong> ho\u1eb7c <strong>consolidation<\/strong> near the <strong>$65.50<\/strong> (S1) <strong>support base<\/strong> may be <strong>due<\/strong>. Should the <strong>bears<\/strong> continue to <strong>reign<\/strong> over and <strong>capitalize<\/strong> on the <strong>absence of bulls<\/strong>, we may see the <strong>definitive<\/strong> <strong>break<\/strong> below the <strong>$66.50<\/strong> (S1) <strong>support level<\/strong> with the <strong>price action<\/strong> edging <strong>closer<\/strong> to the fresh <strong>$64.00<\/strong> (S2) <strong>support level<\/strong>. Under <strong>extreme<\/strong> <strong>selling conditions<\/strong>, we may even see the <strong>crude<\/strong> <strong>prices<\/strong> <strong>falling<\/strong> towards the <strong>61.50<\/strong> (S3) <strong>base<\/strong>, reaching <strong>levels<\/strong> once seen before in <strong>August<\/strong> of <strong>2021<\/strong>. Should, on the other hand, the <strong>bulls<\/strong> start <strong>piling<\/strong> in, we may see the rise and the break above the <strong>71.00<\/strong> (R1) <strong>resistance level<\/strong> and the move towards the <strong>74.00<\/strong> (R2) <strong>resistance barrier<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Disclaimer:<br><em>This information is not considered investment advice or an investment recommendation, but instead a marketing communication. IronFX is not responsible for any data or information provided by third parties referenced or hyperlinked, in this communication.<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>","protected":false},"excerpt":{"rendered":"<p>WTI\/oil prices continued to fall over the past few days with WTI reaching&#8230;<\/p>","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_daim_seo_power":"","_daim_enable_ail":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-61789","post","type-post","status-publish","format-standard","hentry","category-uncategorized","blog-category-commodities","entry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.8 (Yoast SEO v28.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Oil Analysis Report: Has the rolldown been halted?<\/title>\n<meta name=\"description\" content=\"Oil prices slide below $70 as recession fears weigh on demand, while tight US supply and OPEC cuts offer limited support to WTI.\" \/>\n<meta name=\"robots\" content=\"noindex, nofollow\" \/>\n<meta property=\"og:locale\" content=\"vi_VN\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Has the rolldown been halted\" \/>\n<meta property=\"og:description\" content=\"Oil prices slide below $70 as recession fears weigh on demand, while tight US supply and OPEC cuts offer limited support to WTI.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.smartchinaeducation.com\/vi\/has-the-rolldown-been-halted\/\" \/>\n<meta property=\"og:site_name\" content=\"Complete Turnkey Introducing Brokers (IB) Solution at IronFX\" \/>\n<meta property=\"article:published_time\" content=\"2023-05-04T13:15:25+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-02-05T07:34:11+00:00\" \/>\n<meta name=\"author\" content=\"IronFX Team\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.smartchinaeducation.com\\\/vi\\\/has-the-rolldown-been-halted\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.smartchinaeducation.com\\\/vi\\\/has-the-rolldown-been-halted\\\/\"},\"author\":{\"name\":\"IronFX Team\",\"@id\":\"https:\\\/\\\/www.ironfx-cn.com\\\/en\\\/#\\\/schema\\\/person\\\/6727476356d10030d1564b38f6e699b1\"},\"headline\":\"Has the rolldown been halted\",\"datePublished\":\"2023-05-04T13:15:25+00:00\",\"dateModified\":\"2026-02-05T07:34:11+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.smartchinaeducation.com\\\/vi\\\/has-the-rolldown-been-halted\\\/\"},\"wordCount\":921,\"publisher\":{\"@id\":\"https:\\\/\\\/www.ironfx-cn.com\\\/en\\\/#organization\"},\"articleSection\":[\"Uncategorized\"],\"inLanguage\":\"vi\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.smartchinaeducation.com\\\/vi\\\/has-the-rolldown-been-halted\\\/\",\"url\":\"https:\\\/\\\/www.smartchinaeducation.com\\\/vi\\\/has-the-rolldown-been-halted\\\/\",\"name\":\"Oil Analysis Report: Has the rolldown been halted?\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.ironfx-cn.com\\\/en\\\/#website\"},\"datePublished\":\"2023-05-04T13:15:25+00:00\",\"dateModified\":\"2026-02-05T07:34:11+00:00\",\"description\":\"Oil prices slide below $70 as recession fears weigh on demand, while tight US supply and OPEC cuts offer limited support to WTI.\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.smartchinaeducation.com\\\/vi\\\/has-the-rolldown-been-halted\\\/#breadcrumb\"},\"inLanguage\":\"vi\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.smartchinaeducation.com\\\/vi\\\/has-the-rolldown-been-halted\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.smartchinaeducation.com\\\/vi\\\/has-the-rolldown-been-halted\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.smartchinaeducation.com\\\/vi\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Has the rolldown been halted\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.ironfx-cn.com\\\/en\\\/#website\",\"url\":\"https:\\\/\\\/www.ironfx-cn.com\\\/en\\\/\",\"name\":\"Complete Turnkey Introducing Brokers (IB) Solution at IronFX\",\"description\":\"&quot;Our Introducing Brokers program offers competitive conditions tailored to our partners&#039; needs. 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