1. Production and stocks: according to the weekly report published by the EIA, US oil stocks increased by 0,431 million barrels up to 364,622 million during the week ended on July 26th. Gasoline stocks increased by 0,7 million barrels.
2. Major market drivers:
Bullish factors:
Tensions in the Middle East, protests and supply cuts in Libya, positive PMI reports from China, new sanctions against Iran approved by the US Congress, and lower oil production by the OPEC.
Bearish factors:
Above-average oil stocks, excessive supply worldwide, higher oil production in the USA.
3. Seasonality
As far as seasonality is concerned, oil prices are usually consolidating throughout August.
The price is expected to keep moving within a narrow range this month. The chart below, courtesy of Masterforex-V Academy, reflects the current state of affairs in the market of crude oil:
