FXStreet (Guatemala) – Analysts at Brown Brothers Harriman explained that the price of light sweet crude oil fell 4.2% last week, the third consecutive losing week.
Key Quotes:
“The preliminary deal with Iran, coupled with the continued overproduction in the US and OPEC weighed on sentiment, The September futures contract approached $50 before the weekend, which represents new four-month lows.”
“The bears may turn a little cautious. The Iranian deal still needs to be ratified, and there will likely be a fight in the US Congress. If this support holds, the price can bounce.”
“Technicals appear stretched. The $54.00-$54.50 offers initial resistance, but the gap from earlier this month (~$56.00-$56.85) is key. However, the move to $50 would be the objective of the gap if it were a measuring gap.”
(Market News Provided by FXstreet)