Jakarta, GIC Trade – WTI crude oil futures are stable around $80 per barrel in Tuesday's trading after a decline in the previous session, as traders continue to assess various demand and supply factors.

Economic uncertainty in China continues to weigh on demand prospects, as policy support measures from Beijing have so far failed to convince the market of a stronger recovery in the world's largest crude oil importing country.

Investors are also preparing for preliminary U.S. PMI data for August and the Federal Reserve's annual economic symposium in Jackson Hole this weekend.

On the supply side, production cuts from OPEC+ countries, Saudi Arabia, and Russia provide support for oil prices. Investors are now awaiting U.S. crude oil inventory figures from the American Petroleum Institute on Tuesday and official data from the Energy Information Administration on Wednesday.

U.S. crude oil and gasoline inventories are expected to decline last week, according to an initial Reuters poll, as the American Petroleum Institute is set to release its data on Tuesday.

Meanwhile, recent U.S. economic data has bolstered expectations for the Fed to maintain higher interest rates for a longer period, dampening demand prospects for oil and various consumer goods.

Fundamentally, the economic uncertainty in China continues to weigh on demand prospects, as policy support measures from Beijing have so far failed to convince the market of a stronger recovery in the world's largest crude oil importing country.

Technical Analysis



In the one-hour timeframe, oil prices are attempting to move downward, needing to break below the support level at 79.53 to reach the next support level at 78.85. Meanwhile, to shift the bias to bullish, oil prices must surpass the resistance level at 80.40 to approach the next resistance level at 81.30.

This analysis represents the author's views from both fundamental and technical perspectives and is not intended as advice or solicitation. For more information, click the image below.