Crude oil continues to show uncertainty since the surge early in March which took the price close to $1.30 faded and the price fell back below $100. Although, a support zone has formed around the $94-95 level and e have seen two strong bounces from there. Although, buyers have given up and the highs have gotten lower, which means that the buying pressure is fading.

Yesterday crude oil prices reached $105.50, but after FED chairman Jerome Powell signaled aggressive interest rate hikes in the months ahead, oil futures tumbled lower today, giving up some gains from the overnight session as financial markets turned jittery. Powell said at a meeting of the International Monetary Fund that “Fifty basis points will be on the table for the May meeting”.

US Crude Oil Live Chart – WTI Making Lower Highs

Will the 50 SMA be broken today?

The failure of the Biden’s administration to force other countries to place sanctions on Russian oil and gas have cooled the buying spree. Earlier today, the German chancellor Olaf Scholz said that he doesn’t see how a gas embargo on Russia would end the war, which means that the Eurozone won’t place sanctions.

The IMF took down global GDP forecasts as well as that for individual countries, in a warning about inflation and the impacts of the Ukraine conflict. They now see global GDP growing by 3.6% this year from 4.4% previously, which has kept the demand mild for oil.