- Poor economic prospects put pressure on the price of oil.
- WTI negative tone, look at the weekly low.
- Equity markets in negative, the dollar rises modestly.
The prices of Petroleum are falling on Tuesday, affected by a weak economic outlook, with growing expectations of a global recession. Equity markets are mostly pulling back while the dollar is up modestly.
The WTI price (trading platforms) is located in the area of $83.30, after bottoming at $82.80. Should it manage to consolidate below $83.00, the negative tone could intensify. At the $82.00 area is the next support followed by the October low at $81.24.
The declines on Tuesday are accompanied by what is happening with the equity markets. Wall Street futures lost around 0.25%. DXY rises 0.05%.
Concerns about how weak futures economic activity may affect demand in the oil market weighed on prices on Tuesday.
Tuesday’s economic calendar highlights the report on US home prices, consumer confidence, and the manufacturing index from the Richmond Fed and then the weekly report on crude oil reserves from API (American Petroleum Institute).
Technical levels
Source: Fx Street
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