Otherwise, a decline below $3,886 would signal a continuation of the bearish correction and confirm a failure of support at the long-term uptrend line. That line has been in place for over two years, defining dynamic trend support. The other significant long-term trend support indicator, the 200-day moving average, failed as support in early June. That suggests that the trendline is vulnerable to failure as well. A breakdown from this area would therefore represent a significant deterioration in gold’s broader technical outlook.

Lower High Keeps Short-Term Pressure Intact

This week produced a new lower swing high for gold at $4,203, which is now a key component of the near-term bearish trend structure. By itself, that is a bearish indication since it suggests a potential continuation of the declining trend. However, since gold has already corrected by around 29.6% from the $5,597 peak and it remains in a potentially significant support zone, signs of strength could lead to a reclaim of the 20-day moving average and a bullish continuation signal above $4,203. Therefore, the next move will likely depend on whether buyers can defend support and reverse the developing sequence of lower highs.

Bullish Confirmation Requires Key Breakout

A decisive advance above the three-day high of $4,138 will confirm a higher swing low from Wednesday at $4,021 and a reclaim of the 20-day moving average near $4,129. Further signs of strength should follow leading to a continuation signal above $4,203. That would put gold on track to test higher targets, starting around the 50-day moving average at $4,352. Until then, the key question remains whether current support can hold long enough to allow the recovery scenario outlined at the beginning of this analysis to develop.

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Domestic coffee prices today

Coffee prices today in the domestic market turned down after maintaining in the high zone. The average price was recorded at 95,200 VND/kg, down 3,100 VND/kg compared to the previous update.

In Dak Lak, coffee prices decreased by 3,000 VND/kg, down to 95,200 VND/kg. In Gia Lai, coffee prices reached 95,200 VND/kg, down 3,100 VND/kg.

In Lam Dong, coffee prices today decreased by 3,200 VND/kg, down to 94,700 VND/kg. This is the lowest level among the surveyed areas.

The old Dak Nong area recorded the highest purchase price, reaching 95,300 VND/kg, down 3,100 VND/kg compared to the previous update.

After this decrease, the domestic coffee price level has left the near-100,000 VND/kg zone. However, the current price is still significantly higher than the area below 93,000 VND/kg recorded before the recent strong increase.

The USD/VND exchange rate according to Vietcombank was recorded at 26,060 VND/USD, down 14 VND.

World coffee prices

At the close of last week’s session, world coffee prices simultaneously decreased on both the London and New York exchanges.

On the London exchange, the September 2026 Robusta futures contract fell 191 USD/ton, equivalent to 4.72%, to 3,852 USD/ton.

During the session, this contract at one point reached 4,009 USD/ton but then fell to the lowest level of 3,790 USD/ton. Trading volume reached 11,256 lots.

Robusta for November 2026 delivery fell 183 USD/ton, equivalent to 4.57%, to 3,819 USD/ton.

The January and March 2027 terms decreased by 177 USD/ton and 175 USD/ton respectively, to 3,790 USD/ton and 3,758 USD/ton.

The July 2026 Robusta contract stood at 3,872 USD/ton, down 20 USD/ton. However, this term has low trading volume because it is close to maturity, so the September contract reflects the market trend more clearly.

On the New York exchange, Arabica also fell sharply. September 2026 Arabica futures fell 13.65 US cents/lb, equivalent to 3.92%, to 334.25 US cents/lb.

Arabica December 2026 futures fell 12.20 US cents/lb, equivalent to 3.72%, to 316.00 US cents/lb.

The March and May 2027 terms decreased by 11.35 US cents/lb and 10.80 US cents/lb respectively, to 309.65 US cents/lb and 307.50 US cents/lb.

The July 2026 Arabica contract reached 343.00 US cents/lb, down 13.95 US cents/lb. However, this term has lower trading volume than long-term contracts because it is near maturity.

Coffee price assessment

Domestic coffee prices fell sharply after approaching the 110,000 VND/kg mark. This development is accompanied by the adjustment of Robusta and Arabica prices in the world market.

In the short term, the coffee market still fluctuates strongly after previous rapid increases. When prices rise high in a short time, profit-taking pressure often appears, causing prices to reverse sharply in both the international and domestic markets.

The simultaneous decrease in Robusta and Arabica shows a return of cautious sentiment. However, the current price level is still high compared to the beginning of July, reflecting that the market has not yet emerged from a sensitive state to weather, inventory and supply information.

From a global supply-demand perspective, the report of the International Coffee Organization (ICO) said that Coffee Market Report is a publication tracking price, trade and supply-demand balance of the coffee industry. Recent reports show that coffee prices are strongly affected by expectations of improved supply and export fluctuations.

For Brazil, the Foreign Agricultural Services Agency of the US Department of Agriculture (USDA/FAS) said that the Brazilian National Supply Company (CONAB) forecasts Brazil’s coffee production in the 2026-2027 crop year to reach 66.7 million bags, an increase of 18% compared to 2025.

Brazil is the world’s largest Arabica producer. Therefore, the prospect of a large crop in this country is still an important factor that could put pressure on Arabica prices in the medium term.

Rabobank of the Netherlands also assessed that harvesting activities in Brazil in May were favorable in both the Arabica and Conilon regions, with stable weather forecasts supporting harvest progress. This shows that the prospect of Brazil’s supply is still a factor that needs to be closely monitored.

With Robusta, supply from Vietnam continues to be a noteworthy factor. The USDA/FAS report forecasts that Vietnam’s coffee production in the 2026-2027 crop year will increase to 32.5 million bags converted to green beans, thanks to production expansion after a period of high coffee prices.

Vietnam is the world’s largest Robusta producer, so the prospect of increased production may put pressure on Robusta in the medium term. However, prices may still fluctuate sharply due to export demand, inventory and fluctuations on international exchanges.

Key Takeaway

The crude oil market in mid-2026 presents a fascinating paradox that investors and traders must carefully navigate. On one hand, we are witnessing one of the largest supply surpluses in recent memory, with the International Energy Agency projecting a potential oversupply of 3.7 to 4.0 million barrels per day. On the other hand, ongoing geopolitical tensions and the delicate state of US-Iran negotiations continue to inject significant volatility into price action. As of July 2026, Brent crude has retreated to approximately $72 per barrel, while WTI has slipped below $69, marking their lowest levels since late winter.

This dramatic price decline reflects a market rapidly repricing geopolitical risk premiums following positive developments in US-Iran diplomatic talks in Qatar. However, the underlying supply-demand fundamentals remain bearish, creating a complex trading environment where short-term rallies could emerge from supply disruptions while longer-term pressure persists from abundant global inventories. For investors seeking exposure to energy markets, understanding these competing forces is essential for positioning portfolios effectively in the second half of 2026.

The Current State of Oil Markets

From Strait of Hormuz Crisis to Diplomatic Optimism

The oil market’s journey through 2026 has been nothing short of extraordinary. The year began with bearish fundamentals dominating sentiment, as non-OPEC production from the United States, Brazil, Canada, and Guyana surged while demand growth remained relatively muted. However, everything changed on February 28, 2026, when US-Israeli air strikes on Iran triggered the effective closure of the Strait of Hormuz, through which approximately 20% of global oil demand normally transits.

Within days of this geopolitical shock, Brent futures approached $120 per barrel, representing a 50% surge from the start of the year. This spike demonstrated how quickly supply concerns can override fundamental oversupply conditions. Yet as diplomatic efforts gained momentum through the spring and early summer, prices have retraced significantly. The current optimism surrounding US-Iran negotiations has dramatically eased fears of prolonged supply disruptions, paving the way for the gradual reopening of this critical maritime chokepoint.

Compounding the bearish pressure on oil prices, OPEC+ has signaled its intention to proceed with scheduled production increases starting in August. This decision reflects the cartel’s desire to maintain member unity rather than sacrifice volumes for price support, suggesting that OPEC+’s intervention capacity has weakened considerably as non-OPEC barrels flood the market.

Supply Fundamentals: The Super-Glut Narrative

The supply side of the oil equation presents a challenging picture for price bulls. Goldman Sachs has revised its 2026 forecast downward, now expecting WTI to average $52 per barrel and Brent to average $56, citing the persistent 2 million barrels per day surplus. This oversupply is driven by multiple factors converging simultaneously.

US crude oil production is forecast to average 13.6 million barrels per day in 2026, establishing a new record that adds further supply-side pressure once geopolitical risk premiums fade. Russia continues to contribute significantly to global supply, with officials guiding toward crude production of 10.54 million barrels per day in 2026, despite ongoing geopolitical tensions related to Ukraine. Additionally, non-OPEC+ growth from Brazil, Guyana, and Argentina continues to exceed expectations.

Over the past 90 days, global inventories have expanded by roughly 180 million barrels, tightening refining margins and forcing cutbacks in processing runs across Europe and Asia. This inventory build demonstrates that the market is physically oversupplied, creating a ceiling for price rallies even when geopolitical tensions flare.

Regional Demand Dynamics and Economic Indicators

Asian Market Softness

The demand side of the equation reveals particular weakness in Asian markets, which have historically served as the primary engine of global oil consumption growth. Chinese refinery throughput declined 0.9% month-on-month in recent reporting periods to 14.86 million barrels per day, representing the lowest level in six months. This reduction in processing activity reflects both softer domestic demand and cautious inventory management by Chinese state-owned refiners.

The Indonesian ICP provides a useful barometer for Asian demand conditions, having slid from $62.83 in November 2025 to $61.10 in December, with further weakness evident in subsequent months. For Asian refiners, current price levels translate into relatively comfortable refining margins in the absence of a demand shock, reducing the urgency to bid aggressively for crude cargoes.

US Economic Resilience and Manufacturing Activity

In contrast to Asian softness, US economic data has shown remarkable resilience throughout 2026. The ISM Manufacturing PMI registered 53.3% in June 2026, indicating continued expansion in manufacturing activity, though at a more moderate pace than earlier in the year. This marks the 20th consecutive month of overall economic growth for the manufacturing sector.

New Orders remained in expansion territory at 56%, while the Employment Index improved to 49.7%, nearing stabilization after previous weakness. However, the Prices Index stayed elevated at 73%, suggesting persistent inflationary pressures that could influence Federal Reserve policy decisions. The interplay between economic growth, inflation, and monetary policy will significantly impact oil demand expectations for the second half of 2026.

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Central Bank Policy and Currency Considerations

Federal Reserve’s Higher-for-Longer Stance

Monetary policy has emerged as a critical factor for oil markets in 2026. After a difficult 2025, the US dollar has regained traction, supported by expectations of a more persistent higher-for-longer interest rate environment. Markets have adjusted their expectations for Federal Reserve rate cuts, with the probability of September cuts now priced at approximately 60%, down from earlier expectations of more aggressive easing.

This dollar strength creates headwinds for oil prices, as commodities denominated in dollars become more expensive for holders of other currencies. The US Dollar Index has held steady around 97.50, with the euro and yen showing modest strength following trade deal announcements. Until yield spreads stabilize, the near-term path for commodity prices remains closely tied to dollar movements.

ECB and Global Monetary Conditions

The European Central Bank has taken a more hawkish stance than initially anticipated, raising rates and leaving the door open to further tightening. However, for the euro and global risk assets, the issue remains relative policy positioning. A more hawkish ECB can help limit euro downside, but it is not sufficient to generate sustained currency appreciation if US rates are being repriced in the same direction.

Short-term yield spreads remain the clearest indicator for currency movements. The 2-year Bund-Treasury differential has moved materially against the euro in recent weeks, helping explain why EUR/USD weakened even as the ECB tightened policy. These currency dynamics have direct implications for oil prices, as dollar-denominated commodities face demand headwinds when the greenback strengthens.

OPEC+ Strategy and Production Decisions

The Challenge of Maintaining Unity

OPEC+ faces an increasingly difficult balancing act as it attempts to manage prices while maintaining cohesion among member states. Despite worsening supply-demand balances, the cartel has approved another modest 137,000 barrels per day increase in output, representing its third consecutive monthly rise. This approach aims to preserve member unity rather than sacrifice volumes for price support, but it also signals diminished capacity to influence market prices through production cuts.

The OPEC Basket has remained relatively stable near $64.65, effectively flat despite the cartel’s interventions. This stability masks underlying weakness, as the basket price would likely be significantly lower without the ongoing production restraint agreements. The challenge for OPEC+ is that non-OPEC production growth continues to offset the cartel’s cutbacks, limiting their market power.

Production Increases Starting August

Looking ahead, OPEC+ has indicated it will proceed with scheduled production increases starting in August 2026. This decision reflects confidence that global demand will absorb additional supply, but it also risks exacerbating the current oversupply conditions if demand growth fails to meet expectations. The cartel’s strategy appears focused on maintaining market share rather than defending specific price levels, representing a significant shift from previous approaches.

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Geopolitical Risk Factors

US-Iran Negotiations and Supply Security

The trajectory of US-Iran diplomatic relations remains the most significant wildcard for oil markets in the second half of 2026. Positive commentary from US officials regarding negotiations in Qatar has dramatically eased fears of prolonged supply disruptions, contributing to the recent price decline. However, the situation remains fluid, and any breakdown in talks could quickly reverse the current optimism.

Iran’s production of approximately 3.2 million barrels per day, combined with its role as a key exporter to Asian buyers, makes the outcome of these negotiations critical for global supply security. US sanctions on Iranian oil logistics and the visible deployment of naval assets to the region have kept some risk premium in prices, even as diplomatic progress is reported.

Other Regional Hotspots

Beyond Iran, other geopolitical factors merit monitoring. Kazakhstan’s massive Tengiz field experienced partial outages following a fire at the operating joint venture, with output averaging only 1.0-1.1 million barrels per day versus the usual 1.8 million. While these disruptions are temporary, they demonstrate how quickly supply can be affected by operational issues.

The broader Middle East situation, including ongoing tensions between Israel and various regional actors, continues to pose tail risks for oil supply. While the market has become somewhat desensitized to these risks after years of elevated tensions, any escalation could trigger rapid price appreciation.

Price Forecasts and Trading Scenarios

Institutional Forecasts Diverge

Major financial institutions have presented divergent forecasts for oil prices through the remainder of 2026, reflecting the uncertainty surrounding both supply and demand factors. J.P. Morgan maintains a bearish base case of $60 per barrel for Brent, assuming geopolitical tensions ease and the supply surplus persists. In contrast, the EIA’s March 2026 forecast projects Brent averaging around $70 per barrel by year-end, incorporating some ongoing risk premium.

Goldman Sachs has taken the most bearish stance, forecasting WTI at $52 and Brent at $56 for full-year 2026 averages. These projections assume that non-OPEC production growth continues to outpace demand increases, and that geopolitical risk premiums gradually fade as diplomatic efforts progress.

Three Scenarios for Second Half 2026

Base Case: Gradual Recovery with Volatility
In the base case scenario, Brent crude trades in a $65-75 range through the second half of 2026. This assumes US-Iran negotiations continue making progress without major disruptions, OPEC+ proceeds with measured production increases, and global demand grows at approximately 1.0 million barrels per day as currently forecast. Prices would remain vulnerable to periodic spikes from supply disruptions but face downward pressure from inventory builds.

Bull Case: Supply Disruption Shock
A breakdown in US-Iran negotiations or major supply disruption elsewhere could quickly send Brent back above $90 per barrel. This scenario would likely involve closure of the Strait of Hormuz or significant production outages in major exporting countries. While current diplomatic momentum makes this less likely, the risk cannot be dismissed entirely.

Bear Case: Demand Collapse
If global economic growth slows more dramatically than expected, particularly in China and other emerging markets, oil prices could test the $50-55 range for Brent. This would require a combination of continued supply growth and demand weakness that overwhelms OPEC+’s capacity to respond through additional cuts.

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Investment Implications and Sector Analysis

Energy Sector Equities

The decline in oil prices has created a mixed environment for energy sector equities. Integrated oil majors with diversified operations and strong balance sheets are better positioned to weather the current price environment than smaller exploration and production companies with higher cost structures. Companies like Chevron and ExxonMobil have demonstrated resilience, though their stock performance remains correlated with crude price movements.

Refining companies have actually benefited from the current environment, as lower crude input costs combined with relatively stable product prices have expanded refining margins. This has created an interesting divergence within the energy sector, where downstream operations outperform upstream exploration and production.

ETF and Index Considerations

For investors seeking diversified exposure to energy markets, the Energy Select Sector SPDR Fund provides broad exposure to the sector. However, given the current oversupply conditions and price volatility, position sizing and risk management remain critical. The fund’s performance will likely track crude oil prices closely while offering some diversification through exposure to integrated majors and refiners.

Technical Analysis and Key Levels

Support and Resistance Zones

From a technical perspective, Brent crude has established key support around the $70 level, with psychological support at $65 should that level break. Resistance is now seen at $75-77, representing previous support that has become overhead supply. A sustained break above $77 would suggest the corrective phase has ended and a new uptrend could develop.

WTI shows similar technical patterns, with support at $65-67 and resistance at $72-74. The WTI-Brent spread has widened slightly, reflecting regional supply-demand imbalances and transportation constraints. Traders should monitor this spread for signs of shifting arbitrage opportunities.

Momentum Indicators

Momentum indicators suggest the current decline may be approaching oversold conditions, at least in the short term. However, oversold markets can remain oversold for extended periods when fundamental factors are aligned against price appreciation. Any bounce from current levels should be viewed with caution until there is evidence of fundamental improvement in supply-demand balances.

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Conclusion

The crude oil market in July 2026 presents investors with a complex environment characterized by abundant supply, uncertain demand growth, and significant geopolitical risks. While current prices near $72 for Brent and $69 for WTI reflect optimism about diplomatic resolutions and adequate global supply, the underlying fundamentals suggest continued pressure unless demand surprises to the upside or supply disruptions materialize.

For investors and traders, the key to navigating this environment lies in maintaining flexibility and being prepared for multiple scenarios. The divergence between institutional forecasts, ranging from $52 to $70 for Brent, reflects genuine uncertainty about how competing forces will resolve. Those positioned for volatility while managing downside risk are likely to fare best in the second half of 2026.

The energy transition continues to cast a long shadow over long-term oil demand, but in the immediate term, geopolitical factors and macroeconomic conditions will drive price action. Staying informed about diplomatic developments, inventory data, and central bank policy decisions will be essential for making informed investment decisions in this challenging but potentially rewarding market environment.

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The GBPJPY pair approached the extra target at 218.10 by its last bullish rally, but its neediness to the bullish momentum by stochastic attempt to exit the overbought level that pushed it to form corrective rebound, to settle near 217.00.

The continuation of the trading fluctuation below the barrier at 118.10 makes us expect forming corrective trading, to target 216.30 level reaching the extra support near 215.45, while breaching the barrier and holding above it will open the way for resuming the bullish trend, reminding you that the stability of the next main target near 218.65 level.

The expected trading range for today is between 216.55 and 218.10

Trend forecast: Fluctuated within the bullish trend