Bearish Signs in Crude Oil Again, As US WTI Dives Below $96

Crude Oil has been rejected by smaller MAs on the H1 chart, falling below $98 again, indicating strong selling pressure

Skerdian Meta•Wednesday, July 6, 2022•1 min read

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

WTI

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Open a FREE Trading Account

ABOUT THE AUTHOR See More

Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.