US crude prices suffered further losses after OPEC+ members allegedly were considering a major production boost in July, according to reports. The proposed hike is enough to increase capacity by about 411,000 barrels per day and has been authorized in response to increasing demand for oil. US crude has had a tough time gaining traction. It is still stuck in a bear trend with prices unable to regain $65.30 per barrel.
On the open market, US crude just fell below $61 per barrel, recently hitting a low of $60.60. This price is a very big psychological barrier for the commodity. Currently at $65.30 per barrel it has met the 38.2% Fibonacci retracement level. That’s the line that separates a continuing, ugly year-to-date downtrend from the start of a medium-term bullish reversal. As per analysts, the bear market will almost assuredly persist without US crude breaking above this crucial resistance level.
The expected OPEC+ production increase would maintain downward pressure on US crude prices. The organization has a decades-long track record of manipulating international oil markets. Traders and investors alike spend an inordinate amount of time hanging on their every decision. Market participants are looking nervously at the proposed production increase. Third, they are worried about the potential overall negative effect on supply dynamics at a time of very volatile and changing global demand.
Technical analysis suggests that US crude’s bearish outlook is still in place as long as it stays below the key $65.30 level. If the price goes above this level, it might show that the mood is turning. Together, these factors might pave the way for a brighter crude oil price threshold. Until that happens, market watchers are on edge because of the ongoing negative sentiment.
OPEC+ are taking crucial decisions soon, which can seriously affect the crude prices. At the same time, US crude prices are being affected by wider economic conditions and global trade tensions. The European energy crisis, largely caused by the Ukraine war, is now severely impacting the German economy. This manmade disaster is causing unprecedented alarm over energy availability and consumption across the continent. This could have major ripple effects on global oil prices, with high economic multipliers as countries’ economic activities shift in response to energy unknowns.
Against this backdrop in the oil and energy markets, US solar stocks have continued to see a significant drop in investor enthusiasm. Enphase, a prominent player in the solar sector, saw its shares plunge nearly 20% following the recent US vote aimed at cutting clean energy tax credits. This large a reduction in incentives is enough to kill most of the future growth of solar companies. Consequently, investors might start to reconsider their bet on the tight-knit sector.
The US dollar is more broadly dealing with strong headwinds ranging from other market and economic pressures. Currency value changes affect commodity pricing, such as crude oil, where speculation is based on the USD, as crude oil is quoted in dollars. Traders are keenly attuned to these dynamics as they gauge a path onward through a haze of uncertainty and countervailing economic signals.