Oil market analysis: bearish sentiment is dominating the market narrative

Jinshi data news on September 4th, according to foreign media analysis reports, the reaction of the crude oil market to the development of various events this Monday indicates that a bearish sentiment is dominating the market narrative. The PA of Brent crude oil shows this dynamic, with the futures contract for the next month falling by 4.9% on Tuesday to close at $73.75 per barrel. This is the lowest Closing Price in nine months, continuing the downward trend since July 5. The direct catalyst for Tuesday's sharp decline is the report that the parties vying for control of Libya have reached a protocol that could lead to the resumption of the country's oil exports. The crude oil exports from the main ports of Libya were suspended on Monday, but the market's response to Monday's news was mild, while the potential protocol reached on Tuesday and the news that oil production would not immediately resume were enough to cause oil prices to fall by nearly 5%. This alone indicates that the market is currently seizing bearish news and amplifying it, while disregarding any bullish developments.