Crude Oil Trades Low After Retail Sales

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Crude Oil Trades Low After Retail Sales

Crude Oil Trades Near $68 Post Us Retail Sales

Crude Oil is on the backfoot on Tuesday near the $68 handle and has mostly reversed the gains from Monday. Yesterday's rally stalled near $70, and now Crude Oil is back to $68 once again.

It seems that the weakness in crude oil is due to different events and economic releases around the world. The first reason is the tropical storm in the Gulf region, which will seriously impact the oil output. This led to Monday's rally, which was seen in the Crude Oil.

Us Federal Reserve'S Rate Cut To Benefit Crude Oil

Going forward, the upcoming rate cut (50 bps) is also expected to be bullish for Crude Oil. This is based on the assumption that a rate cut will lead to higher economic activity, which means more demand for Crude Oil.

The WTI is trading near $69.10 for now, while the Brent Crude is seen around $72.27. We expect the Crude Oil to turn higher as the Francine storm will likely act as a tailwind for it. Now, the only question is how far the Crude Oil prices can go with this short reprieve.

As of now, even the $70.00 handle is within reach, and even a little bit of bullish momentum will be enough to send it over. Once the Crude Oil crosses the $70.00 on the D1 chart, the next hurdle will be $71.46. A surge in crude oil demand means that even the $75.27 is in sight, as a lot of bullish events point to that possibility.

But if the weakness persists, it will mean a revisit to the $68.19, which is also an important level from 2023's summer. After that, the next level to watch out for is $64.38, followed by the next one, around $61.65.

Any more weakness in the oil demand or if the US central bank delays the rate cut could mean a revisit to the $60.00 handle.

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