WTI dips back to mid-$83.00s as oil weighed by wider risk asset downturn

WTI has fallen back into the mid-$83.00s from earlier highs around $86.00.
Oil prices have been selling off recently as the US dollar picks up and other risk assets decline.

Joel Frank Independent Analyst

Crude oil prices fell sharply on Monday in tandem with a broad risk asset pullback that has also seen US (and European) equities, risk-sensitive currencies and cryptocurrency markets move sharply lower. Front-month WTI futures currently trade in the mid-$83.00s per barrel, down about $1.50 on the day, having been as high as $86.00 earlier in the session. Support in the $83.00 area is for now holding up, but a break below here could open the door to a drop back towards $80.00 per barrel.

Traders have been citing a combination of Fed tightening fears (as this week’s Fed meeting looms) and concerns about geopolitical escalation in Eastern Europe as weighing on the macro mood. Safe-haven assets such as USD, JPY, CHF and bonds have been outperforming and generally seeing solid demand and some are attributing the stronger US dollar as another factor weighing on crude oil prices on Monday. A stronger dollar makes USD-denominated crude oil more expensive for the holders of international currencies, thus weighing on its demand.

Analysts note that, while the broadly downbeat market mood does seem to be weighing on crude oil prices, rising geopolitical tensions between Russia/Ukraine/NATO, as well as in the Middle Ease as the UAE fends off more Houthi militia attacks, are a source of upside risk for crude oil prices. It remains unclear how any NATO (economic) response to a Russian military incursion into Ukraine would impact the country’s more than 11M barrels per day in crude oil output.

WTI US Oil

Overview
Today last price	83.29
Today Daily Change	-1.36
Today Daily Change %	-1.61
Today daily open	84.65

Trends
Daily SMA20	79.78
Daily SMA50	75.41
Daily SMA100	76.35
Daily SMA200	72.38

Levels
Previous Daily High	85.37
Previous Daily Low	82.64
Previous Weekly High	86.93
Previous Weekly Low	82.64
Previous Monthly High	77.26
Previous Monthly Low	62.34
Daily Fibonacci 38.2%	84.33
Daily Fibonacci 61.8%	83.68
Daily Pivot Point S1	83.07
Daily Pivot Point S2	81.49
Daily Pivot Point S3	80.33
Daily Pivot Point R1	85.8
Daily Pivot Point R2	86.95
Daily Pivot Point R3	88.53

Author

Joel Frank

Independent Analyst

Joel Frank is an economics graduate from the University of Birmingham and has worked as a full-time financial market analyst since 2018, specialising in the coverage of how developments in the global economy impact financial asset

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