After hitting a 10-week high at more than $125/b in mid-June, Brent crude futures have lost ground amid volatile trading as concerns over a global economic slowdown trumped the impact of Western sanctions on Russian Oil supplies. Crude Oil prices tumbled Tuesday with the US WTI declining around $14 and falling below $100 as recession fears grew, sparking fears that an economic slowdown will cut demand for petroleum products.

Yesterday we saw something strange in US Oil price, as Oil feeds froze everywhere when the price fell below $100, and started several hours later above $100.

But, Oil prices have also been knocked by a resurgent dollar, which is holding at a 20-year high against the euro and multi-month peaks against other major currencies. A stronger U.S. dollar usually makes oil more expensive in other currencies, which could curb demand.

US Crude Oil Daily Chart – The 20 SMA Turns Into Resistance

Sellers are getting increasingly confident 

And renewed concerns over possible COVID-19 lockdowns across China could also cap oil price gains. Adding to the downward pressure on prices, all oil and gas fields affected by a strike in Norway’s petroleum sector are expected to be back in full operation within a couple of days, Equinor said on Wednesday.

US WTI Crude Oil Live Chart