WTI oil extends losses into a third day without any clear catalysts. Sell-off accelerated after weak PPI reading amid stronger USD. Earlier OPEC revealed in its October report that oil demand will increase by 2.64 million barrels per day, or 2.7%, in 2022, down 460,000 bpd from the previous forecast. That was the fourth time that the group cut the oil demand forecast. The cartel also lowered its 2023 forecast by 360,000 bpd to 102.02 million bpd. The downward revision follows last week's move by OPEC+ to make their largest cut in output since 2020. The report also showed OPEC output rose by 146,000 bpd to 29.77 million bpd in September, led by Saudi Arabia and Nigeria. Nevertheless, the cartel is producing far less than called for by the OPEC+ agreement amid a lack of investment.
OIL.WTI resumed bearish move after buyers failed to break above major resistance at $93.00, which is marked with previous price reactions and downward trendline. Currently price is testing major support at $87.40 which coincides with 61.8% Fibonacci retracement of the upward wave launched in December 2021. Break below could deepen declines. Source: xStation5
