- Expectation of greater surplus in the oil market and risk aversion pull prices down.
- WTI barrels went from highs in almost a month to lows in more than a week in a few hours.
The prices of Petroleum they are falling significantly for the second day in a row and are at their lowest in a week. On Tuesday they had climbed to the highest level since August 1.
The barrel of WTI (trading platforms) trades at $88.20, the lowest level since August 22. Since Tuesday’s peak, the price has given up nine dollars. This sharp pullback not only put an abrupt end to the bounce, but also exposes the August low around $85.00 again.
On Wednesday it was learned that the ministerial board of the Organization of the Petroleum Exporting Countries and its allies estimates a larger surplus for 2022. The forecast increased by 100,000 barrels per day to 900,000. The report indicates that in October the estimate went from a surplus of 600,000 in October to 1.4 million in November.
Contributing to the weak momentum of the oil price is added risk aversion in the markets. The main Wall Street indices have been in a negative trend for days and are operating at lows in weeks. Later on Wednesday, the Energy Information Agency will release the inventory data.
Technical levels
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
