- Oil prices fall more than 1% on Monday after paring losses.
- Rebound in the actions, helps the WTI to move away from the floor.
Oil prices are lower on Monday although they have trimmed losses in recent hours on a rebound in equity markets. The dollar rises and puts pressure on oil, which is also affected by economic data that points to less global activity.
Downside risk side
At the beginning of the week, oil moved slightly higher, with data from China of growth, and the weakness of the dollar. It approached Friday’s highs but then reversed trend mimicking the decline in major stock indices.
The declines were also accelerated by China’s oil demand figures, which showed a 2% drop in September from a year ago. Preliminary PMI data from Europe didn’t help either as it showed most countries in a contraction zone and down in October from September’s figures. In the US, the PMI data will be released on Monday, as well as the activity index of the Chicago Fed.
The pullback took oil prices to the lowest since Wednesday before rebounding to trim daily losses. The barrel of WTI (trading platforms) is trading around $83.55, after bottoming near $83.20 and far from the peak of $85.50.
Technical levels
Source: Fx Street
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