Oil plunges to lowest since January

OIL.WTI price fell below $84 per barrel on Wednesday, the lowest since January, as worries over lower global demand overshadowed warnings from President Putin about the potential withdrawal of all forms of Russian energy. Disappointing data from biggest importer China and renewed restrictions in several cities threatened further economic damages and subdued fuel consumption. According to today's data, Chinese crude oil imports fell 9.4% in August from a year earlier. Meanwhile tightening financial conditions in major economies and stronger dollar put additional pressure on oil prices. From a technical point of view, price broke below key support at $85.50, which is marked by a lower limit of the 1:1 structure and previous price reactions. If current sentiment prevails, downward move may deepen towards next major support at $76.50, which coincides with 61.8% Fibonacci retracement of the upward wave launched in December 2021.

OIL.WTI, H4 interval. Source: xStation5