- Concern about the situation in China affects markets and raw materials.
- WTI below $74.50, at the lowest since December.
Oil prices remain under pressure and are trading at price levels not seen since December of last year. Concerns about the impact of the protests in China on oil demand are pushing prices down.
In free fall
In China Demonstrations were registered in various cities against the restrictions imposed by the rise in COVID-19 cases. This situation, added to the restrictions, generate fears for the future of oil demand, since China is the largest importer. What happened in the Asian giant is also playing against the share price.
The Organization of Petroleum Exporting Countries and its allies will meet on December 4. It is estimated that they will ratify the decision to cut their production by two million barrels per day until 2023.
The G7 and the European Union will begin implementing the Russian oil price cap next week. Details about the application and the limit are still missing.
To deal with the rise in the price of oil and inflation, the administration of US President Joe Biden will enable Chevron to extract oil from Venezuela.
Prices remain in a strong bearish tone. The barrel of WTI (trading platforms) operates around $74.00, after having fallen to $73.60. A break of this last level could increase negative pressures, exposing $73.00. The $75.00 zone looms as the first resistance. A confirmation above $75.50 would ease the pressure, while just above $77.00 some type of consolidation could be considered.
technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
