Oil price under pressure with Ukraine-Russia talks and China lockdowns
Oil prices fell sharply during today's session amid and reached lowest level since beginning of March on hopes for a diplomatic solution to Russian-Ukraine war and lockdown's in China. Ukraine officials said it had begun "hard" talks on a ceasefire, immediate withdrawal of troops and security guarantees with the Kremlin, despite Russian troops continuing their offensive. Meanwhile the epidemiological situation in China worsened again. Beijing authorities today fully lockdown the city of Shenzhen, which is the largest high-tech area in the world's second economy. This situation may lead to a decline in demand due to the shutdown of production in that region of the world. The pressure was also caused by the stance of India, which announced that it was considering the release of the state's oil reserves, as well as the preferential concentration of fuels from Russia.
OIL.WTI fell sharply during today's session and is currently testing psychological support around $100.00 per barrel, which is marked by a lower limit of the 1:1 structure and previous price reactions. Should break lower occur, downward may be extended to the support at $94.68 which coincides with 61.8% Fibonacci retracement of the last upward wave or even $88.00 handle. Source: xStation5
