WTI crude oil futures settle at $90.03, up $0.40 or 0.43%. The high for the day reached $91.33. The low was at $89.31.
WTI crude oil trades between retracement levels
Brent crude prices settled at $93.27 down $0.03 or -0.03%
For the trading week, the price of crude oil is down marginally by -0.58%.
Looking at the daily chart, the price remains between retracement levels. On the downside, the broken 38.2% retracement of the move down from the June 2022 high, comes in at $86.72. On the top side, the 50% midpoint of the same move down comes in at $93.78. On the wide, those are the support and resistance levels for crude oil
Today the Baker Hughs data showed another decline of -8 oil rigs.
- The crude complex settled slightly stronger after a volatile day.
- This week the modest decline, ended a three-week positive streak due to concerns over Russia’s fuel export ban and potential future rate hikes.
- Kremlin announced the fuel export ban will remain until the fuel market stabilizes.
- WTI and Brent reached highs of USD 91.33/bbl and 94.64/bbl before dropping to lows of 89.31/bbl and 92.80/bbl respectively.
In other news:
- HSBC raised its Brent forecasts, citing:
- Expected tight oil demand due to extended Saudi voluntary cuts.
- Anticipation of the cuts lasting until 2024.
- Continued record Chinese oil demand supporting prices in the near future.
A few Fed governors today expressed concerns toward the price of oil and its impact on inflation. The higher prices could also lead to lower demand, that leads to a correction lower.
Ultimately Time and again, when there is added focus on higher prices, the higher prices lead to lower demand, a slower economy, or often both. The price comes back down.
Then when the price is low, it does the opposite, spurring on more growth and increased demand and utimately higher prices.