Crude Oil has been bearish since mid-June, after failing to hold above $120. Since then, the pressure has been on the downside with US Oil WTI falling below $100 and attempts to push above this major level have failed as the price continues to move back below this level quite quickly.
The focus has been on a drop in U.S. gasoline demand in recent weeks after the national average price hit a record high of $5 a gallon in mid-June. This, combined with fears of a recession, weighed on WTI Crude price. Oil prices fell again today as weak manufacturing data from China and Japan weighed on demand prospects as investors braced for this week’s meeting of OPEC and US officials. other major crude producers on supply adjustments.
Crude Oil 15-Minute Chart – MA Acting as Resistance
US Crude WTI Drops $6 Today
Slowing demand for gasoline weighed on WTI, while British Brent crude prices reflect tight global physical reserves, buoyed by Western sanctions on Russia, as well as the European Union’s ban on the Russian oil which should be implemented before the end of this year. . Thus, the EU continues to kick itself on the foot, hurting the European consumer. The biggest gap between US WTI and UK Brent oil in three years is helping US crude oil exports, which hit a record high of 4.5 million barrels per day (bpd) in the benchmark week se ending July 22.
This is also keeping US WTI lower as today the price fell almost $6 from the high, pushing back below $100 again. The moving averages have turned into resistance on the 15 minute chart now, so we decided to sell the retracement at the 20 SMA (grey). Now we have already taken profits on this signal as the price reversed again and earlier we had a winning signal on GBP/USD. So we’re starting the week on the right foot.