- Stock market fears continue to put pressure on oil.
- WTI continues to decline from $ 73 and is approaching $ 70.
The Oil prices have lost steam and are trading at modest gains on Tuesday, after the opening of the American session. The WTI barrel had risen to $ 71.50 but could not be sustained and fell back to the $ 70.50 area, erasing the gains for the day.
The setback had to do with a recovery of the dollar and after the rise in the stock markets lost strength. Events around Evergrande continue to affect the mood of the markets. Attention also shifts to what will be Wednesday’s Federal Reserve decision.
The oil production in the Gulf of Mexico region it remains below potential after the hurricanes and it is estimated that it will not recover 100% before the end of the year. In any case, the situation with respect to the stock markets continues to dominate the price of crude oil.
From a technical point of view, to the downside the WTI supports appear at $ 69.70, followed by $ 68.30. A confirmation below $ 69.50 would anticipate more weakness ahead. In the opposite direction, affirming above $ 71.20 would ease the current bearish tone. Resistance after $ 72.25 and the $ 73.00 area are seen.