OIL EXTENDS LOSSES ON HIGHER DOLLAR, WILL WTI BREAK BELOW $100.00?
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Oil, forex, xero markets, market insights

Author: Mr. Amar – Technical Analyst

Oil’s recent rally appears to have stalled ahead of a record high around $147.30 as the rapid rise dampens consumption prospects. However, recent data releases from the US suggest that demand will remain strong in 2022 amid a downtrend. in crude stocks. Oil futures fell this morning, extending yesterday’s losses as a stronger US dollar sparked fresh selling, while data showing a surge in US crude inventories and a prolonged shutdown of Shanghai stoked fears of slower demand. US West Texas Intermediate (WTI) futures were down 1.0% to $100.98 a barrel.

The EU may move to ban Russian coal imports following reports of large-scale civilian killings by Russian forces occupying areas near Kyiv, while the United States and the United States are also considering additional measures to reduce Russia’s capacity to wage war against their neighbour. Oil prices are likely to hover around $100 a barrel for a while amid demand concerns and expectations that there will be no conflict in the Middle East during the Muslim holy month of Ramadan, but could rise again after Ramadan and as the US driving season begins. The US dollar rose to its maximum in almost two years on Tuesday, increased by Hawkish’s comments from Federal Reserve officials that have been pressed by rapidly reduce the central bank’s balance sheet.

Additionally, China’s decision to extend a lockdown in Shanghai, one of the country’s key trading hubs, has also raised demand concerns as the country reports a rise in Covid19 infections. Nonetheless, changes in Chinese demand pale in comparison to OPEC+’s ongoing underproduction and certainly the ongoing self-sanction impact on Russian oil exports, highlighted by the Ural trade at a record discount.