Yesterday, oil prices plunged again due to China’s manufacturing index in July slowdown, causing oil demand lost momentum amid excess supply remains.
Official PMI of China fell from 50.2 in June. Caixin PMI index fell to 47.8 in July, the lowest level since 7/2013
WTI prices have plummeted more than 3.3% to $45.26 compared to the opening price $46.79.
While the strategy of low oil prices Saudi Arabia is targeting American shale, countries such as Canada, Nigeria, Mexico, Venezuela and Europe, Asia and the megaoffshore projects are suffering, when the number of rigs fell by more than 160.
The oil giants like Chevron, Shell, Transocean, Schlumberger and Baker Hughes are cutting investment and exploration activity. In contrast, the Middle Eastern countries are pushing production, along with the return of Iran in 2016.
According to the Russian Energy Ministry’s data released on August 2nd, Russian oil production fell to 10.65 million bpd in July, up 10.71 million bpd in June
Oman pushed output to a high record at 992,700 bpd in June, the highest level since 2002 and is aiming at 1 million bpd to cover the budget deficit this year.
Today oil prices rebounded 0.7% compared with the opening price ($45.29) and currently traded at $45.64 at 2:05 p.m GMT + 7.
Tonight 9:00 GMT+7, the US will release factory orders in June, an indicator for assessing the oil demand of the country. Supportive data should help oil prices rebounce.
Forecast: WTI will remain bearish and probably hit the bottom Fibo 100 at price $44.02 in today or tomorrow. With data’s support, WTI can return to around $46.15- $46.4.