Crude oil prices, charts and analysis
- Fear of recession is weighing on the market.
- China’s zero-cavity strategy is lowering oil prices.
See for a list of all market-moving data releases and events DailyFX Economic Calendar
The wave of US dollar buying on Tuesday caught many market participants unaware and sent the stock market to a wide range of multi-month and multi-year extremes. Continued USD purchases were triggered by higher fears that the world’s largest economy could be nearing recession or even in recession due to slowing economic growth. The Federal Reserve slammed the brakes on a record pace and late economic activity in response to the hike in interest rates. US Q1 GDP has shrunk at an annual rate of 1.6%, and the closely watched Atlanta Fed GDP Now measure shows that Q2 US GDP has shrunk by 2.1%. If so, the United States will fall into a technological recession.
Crude oil latest – sell in support as fears of recession increase
China is in the grip of a zero-cove policy with the latest victim of the lockdown, the city of Xian. The city, with 13 million homes, has been closed for sevenDay due to a fatal version of the Omicron variant being spread.
Brent crude prices stabilized in early turnover after trading in a wild 10% range on Tuesday. After opening near its height for the day, the oil sold sharply after the session and before partial recovery, 100.30 / bbl. Multi-week low touches. There is a support zone between $ 95.60 / bbl. And 100.80 / bbl. The former is made up of a cluster of swing logs and this area should hold off more short-term sales. But in the long run, oil prices could fall below $ 90 / bbl in further signs of global economic weakness. For the first time since February this year.
Brent Crude Daily Price Index – July 6, 2022
If we look at the US crude oil, IG retail trade data show 68.48% Trader Net-Long Traders have a long to short ratio of 2.17 to 1. The number of net-long traders is 38.60% higher than yesterday and 39.12% higher than last week, while the number of net-long traders is 41.64% lower than yesterday and 44.17% lower than last week.
We usually take a opposite view of crowd sentiment and traders offer net-long advice Oil – US crude prices may fall. Businesses are more net-long than yesterday and last week, and the combination of current sentiment and recent changes is one of our Strong oil – US crude-bearish reverse trade bias.
What is your point of view Unrefined oil – Bullish or bearish ?? You can let us know via the form at the end of this section or you can contact the author via Twitter nickcawley1.