- Follow the decline in oil prices from highs in nine weeks.
- WTI erases last week’s gains.
- Rise in inventories in the US and concerns about Chinese demand affect the outlook.
Oil prices are falling again on Wednesday and continue to retreat from the highest levels in nine weeks, affected by a variety of factors. The four-week uptrend at risk.
The combination of a cautious climate in the equity markets after the mid-term elections in the US and prior to the publication of the US retail inflation data, weighed on the price of the Petroleum in the American session on Wednesday. To which technical factors can be added.
Previously, it had been the larger-than-expected rise in US oil inventories and the continuation of the policy of China to continue with the restrictions for the covidafter speculation that some kind of relaxation would come.
The barrel of WTI (trading platforms) trades at $87.50, having fallen as low as $86.40, the lowest since November 1. The rebound from the lows could gain support above $88.00 and ease bearish pressures. The price is in the area where a short-term uptrend line that has served as support for the last four weeks is passing.
Technical levels
Source: Fx Street
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