- Strong decline in the markets puts downward pressure on oil.
- Rise of the dollar also plays against crude oil.
- The fall is widespread in raw materials.
The pessimism among investors in the expectation of a global recession is pulling down the markets and also oil prices. The barrel of WTI falls more than 3%.
The WTI barrel price (trading platforms) is at $80.60, the lowest level since January 2022. As such, it is losing support around $82.00, enabling more weakness ahead. The price is on track for the fourth weekly drop in a row.
Comments about cuts in oil production and the increase in geopolitical tensions are not stopping the decline in prices. Pessimism about economic activity for the immediate future is stronger. Europe’s PMI data disappointed adding to the gloom.
Added to the expectation of lower demand is the rally in the dollar throughout the market on Friday and the sharp drop in the equity markets. Wall Street futures fall more than 1%.
Reds in the markets are widespread and also include metals. The Prayed loses 1.60% and silver 2.88%. The copper back 3.75%.
Technical levels
Source: Fx Street
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