- Oil slumps and loses almost $3 from the day’s high.
- The barrel of WTI aims to test the August floor.
Oil prices are collapsing on Tuesday, erasing in a few hours the recovery accumulated in two days. The rapid decline exposes recent lows and they are trading very close to reaching lows since late January.
The barrel of WTI (trading platforms) trades at $86.05, the lowest since Thursday, down 3.15% daily. The August low is in the $85.40 area and if it breaks below it it would mark new cycle lows.
Monday’s decision Organization of Petroleum Exporting Countries and allies (OPEC+) to cut production by 100,000 barrels per day had no lasting impact and was quickly overshadowed by the global economic outlook.
On Tuesday not even the rebound in shares on Wall Street put a stop to the declines. The weakness of the dollar does not help either.
The European Union decided to put a limit on the price of Russian oil, while gas flows through Nord Stream 1 continue to be cut off, until sanctions against Moscow are lifted.
Technical levels
Source: Fx Street
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