Jump to content

Crude Oil (WTI) Update: China Lockdowns, Global Rate Hikes Weigh on Oil


MongiIG

Recommended Posts

CRUDE OIL (WTI) NEWS AND ANALYSIS

  • Chinese lockdowns, OPEC supply cuts and US inventory builds align to send prices lower
  • WTI crude oil - key technical levels analyzed
  • EIA oil stock data at 16:00 BST – inventory build remains a possibility. Favors the current trend

Crude Oil (WTI) Update: China Lockdowns, Global Rate Hikes Weigh on Oil

CHINESE LOCKDOWNS, OPEC SUPPLY CUTS AND US INVENTORY BUILDS

The oil market continues to be determined by the dominant theme of demand destruction – a direct result of aggressive monetary tightening which is gaining traction globally. At 13:15 (BST) today, even one of the major dovish central banks, the ECB, is expected to announce a record rate hike of 75 basis points in an attempt to lower inflation. This week we have already seen a 50 bps hike from the Reserve Bank of Australia and a 75 bps hike from the Bank of Canada.

An opposing force to the steady oil decline is OPEC +, which agreed to cut supply for October in an attempt to stabilize oil prices. Up until this point, the organization had attempted to increase the supply of oil to calm surging oil prices but now the biggest threat to the group is declining oil prices along with declining profitability.

Yesterday US API crude stocks surprised the market with a massive inventory build of 3.645M when the expectation was a drawdown of 733k which helped keep prices suppressed after declining earlier in the day.

China’s extended lockdown of Chengdu for the majority of its 21 million inhabitants weighed on oil prices and as this is likely to have further ramifications of China’s economic growth this year. China is the world’s largest exporter and a slowdown in domestic growth is likely to affect major trading partners.

 

WTI CRUDE OIL - KEY TECHNICAL LEVELS

Sep 8, 2022 | DailyFX
Richard Snow, Analyst

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      21,641
    • Total Posts
      91,937
    • Total Members
      41,932
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    KillieFan
    Joined 27/03/23 17:15
  • Posts

    • Look Ahead to 28/3/23: Australia retail sales; Ocado, Walgreens Boots Alliance, Micron results Earnings take centre stage on Tuesday with results from Micron Technologies, Walgreens Boots Alliance, Ocado, and Bellway. Watch AUD/USD ahead of Australian retail sales data. Angeline Ong | Presenter, Analyst and Content Editor, London | Publication date: Monday 27 March 2023              
    • #EURUSD: Peculiar PatternI spotted a cup & handle pattern on ⚠️EURUSD on 1H time frame.1.0777 - 1.0783 is its neckline.If the price breaks and closes above that, I will expect a bullish movement.Goals will be 1.0843 / 1.0894If the price sets a new low, the pattern will become invalid.
    • Joshua, where next with this trade, have you closed your position following the continued slide since 13th March?
×
×
  • Create New...