Crude oil analysis

Oil at the basic level

Oil prices rose on Tuesday thanks to optimism about the US-China trade talks, hovering at their highest level in more than two months, as investors awaited more news from the US-China trade negotiations that may mitigate the risks of tariffs that may weaken energy demand.

High-level talks between us and Chinese officials began in London on Monday and are scheduled to continue today.

Geopolitical tensions also continued to support oil prices, amid the absence of any progress towards a ceasefire in the Russian-Ukrainian war and uncertainty over the US-Iran nuclear deal.

However, Saudi Arabia has recently called on OPEC to increase production by at least 411 thousand barrels per day in August and possibly again in September, raising concerns about a possible oversupply and may affect the rise of oil.

Oil at the technical level

Oil prices rose today to the levels of about 65.65 dollars per barrel, of which there were some declines towards the levels of 65.35 dollars, and we still expect further decline, as oil prices have reached resistance levels and also a downtrend on the daily frame may push oil to decline again.

Our first targets in case this downtrend holds and the resistance levels are the levels of 62.00, then 60.00 and finally the levels of 56.00 dollars per barrel.

If oil breaks through this trend and resistance and closes above the levels of 66.00/25 with a daily candle, it is possible that we will see a further rise towards the levels of 67.00 and then 70.00 dollars per barrel.