Crude Oil Failing at $93 Resistance One Again

Crude Oil has been bearish from March until the end of September as the USD kept surging higher with the Federal Reserve hiking interest rates like mad, while the global economy and the risk sentiment were diving. The economy is still heading into a recession and the FED is still tightening, but the sentiment has improved since then and the USD has been retreating, which has benefited crude Oil.

On Friday, the risk sentiment improved further after comments that China might reopen from a 2-year coronavirus restrictions and lockdowns, which is a positive thing for the global economy. that sent Oil to the October high at around $93, where buyers started having trouble again.

US Oil Daily Chart – Sellers Reappeared at Resistance

WTI crude Oil is overbought on the daily timeframe

The commodity market reflected the improvement of the general sentiment and UK Brent Oil was stabilizing near 97.60 USD yesterday. The main trigger for the bullish momentum came after an unexpected improvement in the forecasts on the global economy, which is positive for crude Oil, while there is a possibility that China will give up the zero tolerance regime in fighting the coronavirus after last Friday’s comments.

The price of WTI Oil pierced that level briefly yesterday after a small crash in the USD, but then the price retreated back down and fell below $92.  Oil prices fell on Monday, paring gains after rising to more than two-month highs, on mixed signals over China, the world’s top crude importer, potentially relaxing its strict COVID-19 restrictions.

US WTI Crude Oil Live Chart