WTI continues to trade in subdued in low $100s as oil traders mull slowing growth versus supply worries

Crude oil prices continue to trade in uneventful fashion, with front-month WTI futures stuck within their intra-day ranges of the last few days in the low $100s, as traders mull various conflicting themes. At current levels of just under $102 per barrel, WTI trades with losses of a little over $2.0 on the day, with the crude oil bears eyeing a test of weekly lows at almost bang on $100. For now, though, WTI seems unwilling to relinquish the 21 and 50-Day Moving Averages, both of which reside in the $102.00s and have been acting as a magnet to the price action recently.

There haven’t been any fresh major developments amongst the major various themes affecting oil markets on Friday. On the bullish side, Russo-Ukraine peace talks still look stuck according to Russian President Vladimir Putin’s latest remarks and Western nations continue to fan tensions with Moscow by funneling more weapons to Ukraine and with the EU still mulling a blanket Russia oil import ban.

Meanwhile, OPEC+ supply woes remain in focus, with Russian oil output expected to fall precipitously this and next month (due to sanctions) whilst other smaller OPEC+ producers continue to struggle to keep up with recent output quota hikes. Libya has been in focus this week after political instability-related blockades saw output drop by 550K barrels per day this week.

Meanwhile, on the bearish side, concerns about a slowdown in global growth following more downbeat outlooks from the IMF and World Bank and amid a ramping up in central bank tightening bets have been in focus this week. Oil market participants have thus been downgrading their assessment for demand growth this year, with concerns further exaccerbated as lockdowns in Shanghai and other parts of the country drag on.