SINGAPORE: US oil is expected to test a support at $94.02 per barrel, a break could open the way towards $90.56.
The contract failed to break a pivotal resistance at $99.63.
The failure signals a completion of the bounce from $90.56, or the first round of this bounce.
Oil may revisit the low of $90.56 due to the continuation of the downtrend, or stabilize around $91.02 to retest the resistance at $99.63, if the bounce from $90.56 extends later on.
A break above $97.90 could lead to a gain into $99.63-$101.78 range.
Top US energy envoy expects further steps from OPEC producers on supplies
On the daily chart, the downtrend from $123.68 remains steady and may eventually extend to $86.11, the 100% projection level of a wave (C).
The hammer forming on July 14 may have only resulted in a weak gain on July 15.
A genuine reversal is expected to occur around the key support of $86.11.
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