- WTI risks losing $ 70 amid risk aversion led by Evergrande’s troubles in China.
- Expectations of higher production in the US also influence.
- The dollar is stronger in the market, contributing to a negative bias in oil.
After having suffered a rejection around $ 73, the WTI (NYMEX futures) extended its losing streak and fell for the third session in a row on Monday.
WTI at the mercy of risk sentiment
The WTI lost more than 2.0% on the day and reached $ 70.02 affected by a general fall in the stock markets throughout the world amid concerns about a possible default of the company Evergrande of China. Fears looming over the Chinese real estate giant have sparked concerns about the global slowdown, which, in turn, weighs on the outlook for demand for oil and its products.
Amid risk aversion and expectations of a cut in the Federal Reserve buying program, the US dollar remains in the zone of monthly highs, helping to limit any rebound in WTI.
Additional downward pressure on oil prices is also affected by the increase in the US oil rig count and expectations of a return to oil production in the US Gulf following the passage. from hurricanes. As of Friday, 23% of the US Gulf of Mexico crude production (422,078 barrels per day) remained closed, Reuters reported.
The focus is on what happens in the bags. On the data side, weekly US crude stock data will be released later in the week. However, the Federal Reserve’s monetary policy decision will be the main risk event this week.
WTI technical levels
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