Recent data indicate that OPEC + production in March was 1.45m bpd lower than targeted production levels. This is largely due to production problems in minor OPEC countries, but also due to the decline in production in Russia itself. The market is still considering the potential cut-off of Russian exports to Europe, but at the moment such action is unlikely. JP Morgan indicated in his analysis that if the EU decides to introduce an immediate import ban, the price of crude oil will jump to $ 185 per barrel. However, in the event of a gradual reduction of Russian imports, the price shock may be limited. In addition, very negative data from China on oil processing is also driving lower prices (more details can be found in latest Commodity Wrap).
WTI crude oil price fell almost 5% on Tuesday. Price attacks an important demand zone marked with the 23.6 Fibonacci retracement of the last downward move and the 50-day moving average. Major support is located around $ 96.00. Source: xStation5
