WTI crude oil futures are at $90.03, up $0.40 or 0.43%. The day’s high reached $91.33. The lowest was at $89.31.
Brent crude prices settled at $93.27, down $0.03 or -0.03%
For the trading week, the price of crude oil is down slightly by -0.58%.
Looking at the daily chart, the price remains between retracement levels. On the downside, the broken 38.2% retracement of the decline from the June 2022 high stands at $86.72. At the top, the 50% midpoint of the same decline stands at $93.78. Broadly defined, these are the support and resistance levels for crude oil.
Today, Baker Hughs data showed another -8 oil rig decline.
- The crude complex strengthened slightly after a volatile day.
- This week’s slight decline ended a three-week positive streak amid concerns over Russia’s ban on fuel exports and possible rate hikes.
- The Kremlin announced that the ban on fuel exports would remain in effect until the fuel market stabilizes.
- WTI and Brent reached highs of USD 91.33/barrel and 94.64/barrel before falling to lows of 89.31/barrel and 92.80/barrel respectively.
In other news:
- HSBC raised its forecast for Brent, citing:
- Expected oil demand is restrained due to prolonged voluntary Saudi cuts.
- Anticipation of budget cuts until 2024.
- Record Chinese oil demand continues to support prices in the near future.
A few Fed governors today expressed concerns about the price of oil and its impact on inflation. Higher prices could also lead to lower demand, leading to a downward correction.
Ultimately, time and time again, when more emphasis is placed on rising prices, rising prices lead to lower demand, a slowdown in the economy, or often both. The price goes back down.
Then, when the price is low, it has the opposite effect, spurring more growth, increased demand, and ultimately higher prices.