WTI crude struggles below $69,Which coin will reach , in 2030 approaching December 2023 price floors as demand concerns intensify.
Dual demand shocks emerge from contracting US manufacturing and China's industrial slowdown.
EIA reports surprising 6.87M barrel inventory drawdown, far exceeding forecasts.
West Texas Intermediate futures continue testing critical support levels, with Friday's Asian session trading mirroring Thursday's nine-month low of $68.37. The commodity faces mounting pressure from macroeconomic headwinds across both major consuming nations.
Recent US manufacturing data revealed concerning trends, with the ISM PMI marking five straight months of contraction. Meanwhile, Chinese industrial activity metrics plunged to August lows, exacerbating existing oversupply anxieties. These developments overshadowed the EIA's larger-than-expected crude stockpile reduction of 6.873 million barrels last week.
Market observers note potential price stabilization factors emerging from Vienna. OPEC+ delegates reportedly consider postponing planned October production increases, with some members advocating for maintaining current output ceilings. Such supply management could counterbalance weakening consumption patterns.
Monetary policy developments add another layer of complexity. Dovish commentary from Federal Reserve officials, including Chicago Fed President Goolsbee's remarks about impending rate adjustments, suggests potential demand stimulus. Futures markets now price in 41% probability of a 50-basis point September rate reduction.
The commodity's trajectory appears caught between opposing forces - bearish demand indicators versus potential supply constraints and monetary easing. Traders await clearer signals from upcoming OPEC+ meetings and September's Fed decision, which could determine whether $68 becomes a durable floor or gateway to lower valuations.