Oil prices are expected to decline further as western central banks have hiked interest rates further. (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• Oil prices are expected to decline further as western central banks have hiked interest rates further.
• US gasoline demand has trimmed significantly as US corporate has curtailed investments.
• OPEC+ has cut production targets by 3.58 million bps to support oil prices.

The pair currently trades last at 83.01.

The previous day high was 85.86 while the previous day low was 82.3. The daily 38.2% Fib levels comes at 84.5, expected to provide resistance. Similarly, the daily 61.8% fib level is at 83.66, expected to provide resistance.

West Texas Intermediate (WTI), futures on NYMEX, is facing selling pressure while attempting to deliver a bullish reversal. The oil prices are hovering around $83.00 and are expected to tumble further to near $80.00. On a broader note, the black gold is displaying a vulnerable performance for the past three weeks after surrendering the psychological support of $90.00.

A lot of resisting global catalysts have brought an intense sell-off in oil prices. Starting from the hawkish stance by western central banks on their interest rates where the agenda of bringing price stability is sacrificing the extent of economic activities. A decline in economic activities as corporate is not investing due to the unavailability of cheap money a desk. Also, the postponement of expansion plans has trimmed demand forecasts. Eventually, the demand for oil is falling sharply.

The demand for oil in the mighty US economy is falling vigorously. US gasoline demand has slipped sharply by 8.5 million barrels per day over the past four weeks. This has been the outcome of accelerating price pressures, which have forced households to stick with essentials only.

Meanwhile, an unchanged policy announcement from the People’s Bank of China (PBOC) dented the sentiment toward oil prices. As overall demand is not picking up in China and price pressures are strictly lower, a rate cut was expected. However, a neutral stance adopted by the PBOC weakened the oil bulls.

On the supply front, OPEC+ has trimmed the overall production by 3.58 million barrels per day, which accounts for 3.5% of global demand. Despite a decline in global supply, oil inventories are building, which strengthens the signs of recession ahead.

Technical Levels: Supports and Resistances

XTIUSD currently trading at 83.01 at the time of writing. Pair opened at 83.4 and is trading with a change of -0.47 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 86.84, 50 SMA 90.49, 100 SMA @ 99.58 and 200 SMA @ 96.42.

The previous day high was 85.86 while the previous day low was 82.3. The daily 38.2% Fib levels comes at 84.5, expected to provide resistance. Similarly, the daily 61.8% fib level is at 83.66, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 81.85, 80.3, 78.29
• Pivot resistance is noted at 85.41, 87.41, 88.96

[/s2If]
Join Our Telegram Group