• Oil prices are expected to decline further as western central banks have hiked interest rates further.
  • US gasoline demand has trimmed significantly as US corporate has curtailed investments.
  • OPEC+ has cut production targets by 3.58 million bps to support oil prices.

West Texas Intermediate (WTI), futures on NYMEX, is facing selling pressure while attempting to deliver a bullish reversal. The oil prices are hovering around $83.00 and are expected to tumble further to near $80.00. On a broader note, the black gold is displaying a vulnerable performance for the past three weeks after surrendering the psychological support of $90.00.

A lot of resisting global catalysts have brought an intense sell-off in oil prices. Starting from the hawkish stance by western central banks on their interest rates where the agenda of bringing price stability is sacrificing the extent of economic activities. A decline in economic activities as corporate is not investing due to the unavailability of cheap money a desk. Also, the postponement of expansion plans has trimmed demand forecasts. Eventually, the demand for oil is falling sharply.

The demand for oil in the mighty US economy is falling vigorously. US gasoline demand has slipped sharply by 8.5 million barrels per day over the past four weeks. This has been the outcome of accelerating price pressures, which have forced households to stick with essentials only.

Meanwhile, an unchanged policy announcement from the People’s Bank of China (PBOC) dented the sentiment toward oil prices. As overall demand is not picking up in China and price pressures are strictly lower, a rate cut was expected. However, a neutral stance adopted by the PBOC weakened the oil bulls.

On the supply front, OPEC+ has trimmed the overall production by 3.58 million barrels per day, which accounts for 3.5% of global demand. Despite a decline in global supply, oil inventories are building, which strengthens the signs of recession ahead.

WTI US OIL

Overview
Today last price 83.01
Today Daily Change -0.39
Today Daily Change % -0.47
Today daily open 83.4
 
Trends
Daily SMA20 86.84
Daily SMA50 90.49
Daily SMA100 99.58
Daily SMA200 96.42
 
Levels
Previous Daily High 85.86
Previous Daily Low 82.3
Previous Weekly High 89.65
Previous Weekly Low 83.83
Previous Monthly High 97.68
Previous Monthly Low 85.39
Daily Fibonacci 38.2% 84.5
Daily Fibonacci 61.8% 83.66
Daily Pivot Point S1 81.85
Daily Pivot Point S2 80.3
Daily Pivot Point S3 78.29
Daily Pivot Point R1 85.41
Daily Pivot Point R2 87.41
Daily Pivot Point R3 88.96

 

 

 

 

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