WTI crude futures trade near $104 per barrel on Friday and are on track to book second straight week of losses, amid concerns that the hawkish stance of major central banks aimed at curbing soaring inflation could lead to a global recession, which would hurt oil demand. On the other hand, global crude oil and fuel supply remains tight. Despite agreeing to increase output equivalent to 7% of daily global demand in July and August, OPEC+ has been struggling to hit their increase targets due to underinvestment in oilfields by some members and lost Russian supply. Additionally yesterday's emergency meeting between oil industry leaders and US Energy Secretary Jennifer Granholm to lower gas prices and boost domestic oil supplies was constructive, but did not produce a major breakthrough, however both sides agreed to work together. OIL.WTI price is trading within tight range between downward trendline and support at $103.55 which is marked with 38.2% Fibonacci retracement of the upward wave launched in April 2022. Breaking one of these levels could lead to bigger price movements.
OIL.WTI, H1 interval. Source: xStation5
