⬇Demand concerns put pressure on oil prices
OIL.WTI price pulled back sharply from its daily highs of $85.5, as demand concerns weighed on market sentiment. Investors have been growing worried about a deteriorating outlook for growth and demand amid intensifying macro headwinds, including high inflation and tighter financial conditions. Doubts over China's fuel demand outlook grew this week after the world's top crude oil importer delayed the release of GDP data for Q3 2022 and monthly activity data for September. Yesterday Chinese President Xi Jinping praised the country's zero-Covid policy during his speeches at party congress, which may herald further production interruptions if the pandemic situation does not improve. Putting a floor under prices were growing concerns about tighter global supplies as OPEC and its allies, including Russia, agreed to cut production further ahead of the European Union embargo on Russian oil. Meanwhile, Bloomberg reported that White House may make another SPR announcement this week, which puts further pressure on prices. From a technical point of view, OIL.WTI price is currently testing major support at $81.75 per barrel which is marked with previous price reactions. Should break lower occur, downward move may deepen towards September lows at $76.20, where lower limit of the 1:1 structure is located.
OIL.WTI, H4 interval Source: xStation5
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