Crude oil prices decline due to weak data, Fed and ECB, After China’s potential for growth became doubted, crude support began to wane a bit.
Crude oil dipped on weak global prospects
Oil dipped on Monday as worries about the possible economic effects of interest rate increases by the US Fed. Including dismal industrial data from China eclipsed support from new OPEC+ production restrictions during the month.
It is anticipated that the Fed will raise interest rates by an additional 25 basis points when it meets on May 1-2. Oil became pricey for investors of different currencies on Monday as the U.S. dollar increased vs other currencies.
At 08:22 GMT, Brent oil price was off $1.21, or 1.5%, to $79.12 a barrel, and (WTI) crude price was down 96 cents, or 1.3%, at $75.82/bbl.
The OPEC and its allies, plus Russia, collectively known as OPEC+, provided some relief by voluntarily reducing daily production. These cutbacks went into effect starting May.
Technical Analysis of Crude Oil
Following a test at 73.94 of the 50% Fibonacci Retracement level of the movement from 64.36 to 83.53. The rally took place before breaking points in the 72.25-72.46 range, that level might still offer support. 75.72, a close breakpoint, may potentially provide assistance.
Resistance on the upside might be found at the most recent top of 79.18. In the region within 82.50 and 83.50, a series of markers and prior peaks may serve as a zone of resistance higher up.
