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.
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
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.
