WTI falls more than 2% at the start of the week

• Fears about the global growth outlook weigh on oil prices.
• WTI falls over $2, and looks below $100.00.
• Focus on China, the Fed and data.

The Petroleum is falling at the beginning of the week, prolonging the pullback that started at last week’s close from weekly highs. The barrel of WTI (platforms) is at $100.98, down 2.10%, after bottoming at $100.20.

Concerns about growth increased after reading the China PMIs which showed falls in both the service and manufacturing sectors in April, impacted by the restrictions to deal with COVID. These fears are overshadowing the possible bans in Europe on the purchase of Russian fuel.

futures of wall street They rise modestly and the climate of caution prevails, which does not help the prospects for the price of oil. US data will be released later, highlighting the ISM manufacturing for April. The key event there will be the Federal Reserve meeting on Tuesday and Wednesday.

Rejection over $105.00

The price of a barrel had a jump on Friday, reaching over $107.00, but ended up closing near $103.00. Today the pullback continues and below $100.00 is the first relevant support, followed by $99.40 and $97.50. A firm return above $105.00, on the other hand, would anticipate more strength.

In a more general perspective, the price of a barrel of WTI continues to move sideways, with the middle around $ 101.00, and the extremes getting smaller, which can be building a triangle formation, with ascending lows and descending highs, from more than a month ago. The break of this formation could activate even more volatility and could be given above $110.00 and below $95.00.

Technical levels