Crude oil fell over 6% below $98.00 per barrel as fresh Covid-19 curbs in top importer China and mounting fears of a global economic slowdown weighed on the market. Also Russian court rejected appeals to halt Kazakh oil exports via the Black Sea port, which eases concerns over supply.
However, hard data seems to support buyers. According to external sources, oil production by OPEC members increased in June by 234 thousand barrels to 28.72 million barrels. Oil production from countries with quotas reached the level of 24.81 million barrels, which is 1.06 million barrels below the permitted production quotas! This means there is not enough oil on the market. OPEC also indicates that the global GDP growth in 2023 will amount to only 3.2% compared to the earlier forecast of 3.5%.
The key support for WTI crude oil is located around $94.00 and coincides with 200 SMA. Source: xStation5
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