Rystad Energy: Oil Supply Recovery Will Be Gradual

The news eases supply concerns by indicating that the recovery in oil supply will be gradual, which could support prices. However, technical indicators are quite weak: the RSI is at 22.6, in oversold territory, the MACD is below the signal line, and the price is below both the 20-day and 50-day moving averages. While this presents potential for a short-term recovery, the downtrend has not yet been broken. Therefore, an upward move is possible, but the confidence level is moderate.

WTI crude oil is trading in oversold territory (RSI 19.6) and well below its short-term moving averages (SMA20 and SMA50). This technical condition increases the potential for a short-term upward correction. The news headline, stating that supply recovery will be gradual, eases supply concerns and may provide support to prices. However, the 3.7% decline in the last 24 hours and the MACD remaining below the signal line indicate that the downtrend could continue. Therefore, the upside expectation remains limited with moderate confidence.

Exxon Mobil (XOM) shares declined 6.6% over the past 24 hours, closing at $140.97. While the RSI has entered oversold territory at 25.4, the MACD remains below the signal line and in negative territory. The stock is trading below both its 20-day ($145.74) and 50-day ($148.65) moving averages. News headlines indicate that the recovery in oil supply will be gradual, which could exert short-term pressure on oil prices and Exxon Mobil. The combination of weak technical indicators and negative news flow suggests the stock may continue its downward trend in the near term.

The news paints a mildly positive picture for the sector, noting that the recovery in oil supply will be gradual. However, CVX shares have fallen 5.4% in the last 24 hours, and the RSI at 30.5 is approaching oversold territory. The MACD line is below the signal line and in negative territory, indicating weak short-term momentum. The price is trading below both the 20-day and 50-day moving averages, weighing on the technical outlook. Despite the positive news, direction uncertainty persists in the short term due to weakness in technical indicators and the recent decline.