OIL.WTI extends sell-off

WTI crude continues to move lower at the beginning of the week as greenback strengthening puts pressure on dollar-denominated commodities and overshadows supply concerns. IEA expects that China’s economy could see a bigger than expected rebound in the coming months, which should positively affect demand, according to Bloomberg. At the same time, a 7.8 magnitude earthquake in Turkey and Syria, led to the suspension of operations at the Ceyhan oil terminal in southern Turkey. Meanwhile, Saudi Arabia raised the crude price for Asian markets for the first time in six months, while the EU ban on seaborne imports and price caps for Russian oil products also came into effect on Sunday. Nevertheless OIL.WTI price fell below major $73.00 per barrel mark and tested key support at $72.50, which is marked with previous price reactions and lower limit of the local descending channel. Should break lower occur, downward move may deepen towards next support at $70.15, where lows from December 2022 are located.

OIL.WTI, H4 interval. Source: xStation5