- Oil prices rebound from lows in months.
- Downside pressure remains dominant in the face of a weak economic outlook.
- WTI is still in the risk zone and at its lowest in months.
The oil prices they fell to the lowest since February and then bounced back into positive territory. The barrel of WTI (trading platforms) is trading around $86.20, in neutral territory for the day, after failing to consolidate above $87.00.
In the Asian session, the barrel of WTI fell to 84.85$, the lowest level since February. Then it began to recover ground driven by the declarations of the president of RussiaValdimir Putin. The president said that Russia will curb gas supplies if maximum prices are imposed on Russian energy resources.
The weak economic outlook remains dominant and keeps oil prices under pressure. The announcement of the Organization of Petroleum Exporting Countries and allies cutting production by 100,000 barrels per day was not enough to support the price.
The combination of a difficult economic outlook, along with the strong dollar and fears in the stock markets, also weigh on crude oil prices.
In case of a closure of the price of a barrel of WTI well below $85.00, could lead to an acceleration to the downside. As long as it persists above, losses will remain limited.
Technical levels
Source: Fx Street
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