WTI drops below $69 on recession risk, OPEC+ inaction

Oil, as well as other energy commodities, are pulling back today. Brent and WTI trade almost 4% lower while gasoline and US natural gas prices drop over 4%. Move looks to be driven by overall concerns over the condition of the global economy, with re-emergence of US banking problems being one of prime fear drivers. Apart from that, OPEC+ currently seems unwilling to intervene to support prices, what also adds to pressure. 

• US banking sector issues have been reignited with collapse of First Republic Bank, boosting recession risk for the United States
• Back in March when US banking issues first arose, oil took a significant hit
• Chinese post-Covid demand recovery continues at a slower than expected pace
• Russia's Novak said that OPEC+ monitors oil price drop but it may turn out to be temporary
• No changes have been made to meeting schedule - oil producers are still set to meet no sooner than June
• WTI drops below $69 and trades at the lowest level since March 24, 2023
• Brent tests mid-March lows in $72.50 area
• US natural gas prices drop below $2.20 to the lowest level since mid-April

WTI (OIL.WTI) continues pullback after failed attempt to break above the upper limit of the Overbalance structure and 200-session moving average (purple line). WTI plunged below $73 price zone yesterday and continues to drop hard today. A test of $67 support zone looks probable, especially if Fed warns of rising recession risk today. Source: xStation5

Significant declines can be spotted all across the energy commodity market today. Source: xStation5