• Oil attempts to correct a strong sell-off on Tuesday.
  • WTI is weighed by prospects of an economic slowdown that will likely that could slow demand.

The price of oil was sold off heavily on Tuesday, losing over 5% after falling from a high of $97.65 to a low of $90.55 on the day so far. Recession concerns have moved back to the fore at the same time that we have oversupply and while the potential for OPEC+ production cuts ease.

Friday's hawkish speech from Federal Reserve chair Jerome Powell and weekend comments from European officials saying an economic slowdown is likely that could slow demand. As a consequence, West Texas Intermediate crude for October delivery was last seen down US$2.31 to US$94.70 per barrel, while October Brent crude, the global benchmark, was down US$3.11 to US$101.98.

Meanwhile, the weekend reports of militia fighting in Libya raised concerns that the country's 1.2-million barrels per day of oil exports would again be at threat should oilfields and ports again be at threat, though shipments have not yet been impeded. "Following months of blockades of oilfields and oil terminals, production had only just normalised again at a level of 1.2 million barrels per day," Commerzbank said in a note.

Nevertheless, analysts at TD Securities argued, ''energy supply risk is soaring once again. Energy market participants are increasingly sceptical that a potential Iran deal is imminent, with final-hour negotiations showing signs of a potential impasse. President Raisi's recent comments suggest that the safeguards issue remains a point of contention that could derail a potential agreement if Iran does not concede.''

''We reiterate that failure to reach a deal with Iran would suggest that oil is still on a runaway train, as even slowing demand growth would still continue to sap the world's spare capacity. Further, signs that Saudi Arabia and Gulf nations are reviving the OPEC+ put reinforce the likelihood that energy supply risks will continue to insulate prices from demand-side headwinds as oil markets stare down the barrel of a recession.''

WTI US OIL

Overview
Today last price 91.63
Today Daily Change -5.01
Today Daily Change % -5.18
Today daily open 96.64
 
Trends
Daily SMA20 90.9
Daily SMA50 96.51
Daily SMA100 102.63
Daily SMA200 95.08
 
Levels
Previous Daily High 96.99
Previous Daily Low 92.05
Previous Weekly High 95.61
Previous Weekly Low 86.26
Previous Monthly High 109.54
Previous Monthly Low 88.34
Daily Fibonacci 38.2% 95.11
Daily Fibonacci 61.8% 93.94
Daily Pivot Point S1 93.46
Daily Pivot Point S2 90.28
Daily Pivot Point S3 88.52
Daily Pivot Point R1 98.41
Daily Pivot Point R2 100.17
Daily Pivot Point R3 103.35

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD falls below 1.0500 after US NFP data

EUR/USD falls below 1.0500 after US NFP data

EUR/USD dropped below 1.0450 but managed to stage a modest rebound. The US Dollar preserves its strength against its rivals and doesn't allow the pair to gain traction after the data from the US showed that Nonfarm Payrolls rose by 263,000 in November.

EUR/USD News

GBP/USD turns south on upbeat US jobs report, trades below 1.2200

GBP/USD turns south on upbeat US jobs report, trades below 1.2200

GBP/USD lost nearly 100 pips with the immediate reaction to the upbeat November jobs report from the US and broke below 1.2200. The US Dollar Index clings to strong daily gains above 105.00 after the data showed that Nonfarm Payrolls rose by 263,000.

GBPUSD News

Gold retreats below $1,790 as US yields surge on US NFP

Gold retreats below $1,790 as US yields surge on US NFP

Gold price turned south and dropped below $1,790 in the early American session. The benchmark 10-year US Treasury bond yield is up more than 2% on the day near 3.6% after the bigger-than-expected November job growth, weighing heavily on XAU/USD.

Gold News

FTX exchange collapse, loss of $3.1 billion could have been avoided on one condition

FTX exchange collapse, loss of $3.1 billion could have been avoided on one condition

FTX exchange, founded by Samuel Bankman-Fried (SBF), has consistently made headlines over the past month for its liquidity crisis and triggering a collapse in the crypto ecosystem.

Read more

AMC advances more than 3% in premarket day after being halted

AMC advances more than 3% in premarket day after being halted

AMC stock is up 3.4% in Friday's premarket just a day after authorities halted trading due to unusual volatility. Thursday saw options volume three times higher than the 20-day average.

Read more

Forex MAJORS

Cryptocurrencies

Signatures