- The weak economic outlook puts pressure on raw materials.
- WTI barrel falls to lowest since January before rebounding.
Like equity markets, oil prices remain under pressure and facing a bearish trend. In the last hours they managed to rebound after having marked minimums since January.
The barrel of WTI (trading platforms) fell as low as $77.04, and then rallied closer to $80.00, moving into slightly positive territory for the day. The bounce is seen as a bullish correction.
Just after breaking $85.20, where the 20 median is, a firmer recovery could be expected. The downtrend continues. Next support is at $77.60 and a strong barrier appears below at $73.30.
From a fundamental point of view, the declines come in the face of worsening growth expectations throughout the world, which would weaken oil demand. To this was added the tensions in the markets, aggravated on Monday by the fall of the pound sterling.
Fears strengthen the dollar in addition to further clouding expectations for the future. All of the above is negative for the oil picture.
Source: Fx Street
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