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Crude Oil Latest – Selling Off Into Support as Recession Fears Grow


MongiIG

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Jun 23, 2022 | DailyFX
Nick Cawley, Strategist

CRUDE OIL PRICE, CHART, AND ANALYSIS

  • Crude oil continues its recent fall.
  • Recession fears the latest market driver.

Crude Oil Latest – Selling Off Into Support as Recession Fears Grow

Over the last few weeks, recessionary fears have overtaken inflationary fears as the main driver of price action in financial markets with global central bank heads to market pundits fearing the worst for the months ahead. A series of out-sized interest rate hikes by various central banks, in a bid to temper red-hot price pressures, is set to, or are already weighing on global growth prospects as central banks see fighting inflation as their overriding priority. As recession fears grow, oil will continue to aim lower.

The daily Brent Crude chart shows a topping-out pattern earlier this month with the $123.50/bbl. level tested and rejected four times. Price action since then has built a descending channel and has broken below both the 20- and 5-day simple moving average, with both breaks lower immediately confirmed. The price of Brent is now heading towards a zone of prior horizontal support between $100.83/bbl. and $95.60/bbl. with the 200-day moving average also appearing at the lower end of this range. The $100/bbl. psychological level also sits just below the top of the support range and should provide the first real test for oil bears.

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