WTI dips to $90 area concerns about China and US elections

Oil price dips on renewed fears about Chinese demand.
The US dollar's reversal has failed to support crude prices.
WTI falls beyond 2% on the day to hit session lows near $90.00.

Guillermo Alcala FXStreet

WTI prices have extended losses for the second consecutive day on Tuesday, as hopes about a relaxation of the COVID-19 restrictions in China faded, and the investors brace for the outcome of the US mid-term elections.

China confirms its Zero-COVID policy

Hopes that China was contemplating a relaxation on the coronavirus restrictions waned on Tuesday. The Chinese authorities confirmed their commitment to strict COVID-19 controls, which has reactivated fears of negative consequences in oil demand, as the infections increase as the winter flu season approaches.

Furthermore, the uncertainty about the outcome of the US mid-term elections has increased negative pressure on oil prices. Investors have adopted a wait-and-see stance, while the first polls point out to a Republican victory.

The dollar reversal witnessed during the North American trading session has failed to offer any relevant aid to oil futures. Crude prices have dropped more than 2% on the day, extending their reversal from Monday’s highs at 93.65 to session lows right above $90.00.

Technical levels to watch

WTI US OIL

Overview
Today last price	88.64
Today Daily Change	-2.64
Today Daily Change %	-2.89
Today daily open	91.28

Trends
Daily SMA20	86.71
Daily SMA50	85.67
Daily SMA100	91.09
Daily SMA200	97.46

Levels
Previous Daily High	92.92
Previous Daily Low	89.67
Previous Weekly High	92.09
Previous Weekly Low	84.78
Previous Monthly High	92.63
Previous Monthly Low	79.32
Daily Fibonacci 38.2%	90.92
Daily Fibonacci 61.8%	91.68
Daily Pivot Point S1	89.66
Daily Pivot Point S2	88.04
Daily Pivot Point S3	86.41
Daily Pivot Point R1	92.91
Daily Pivot Point R2	94.54
Daily Pivot Point R3	96.16

Author

Guillermo Alcala

FXStreet

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

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