Oil prices kept falling and should reinforce the idea of peak inflation, which appears to be adequate to underpin the markets for the time being.
WTI had a modest recovery on Tuesday, but was unable to remain above its 200-day moving average (DMA) of $95. Geopolitical tensions between the United States and China were in the spotlight during Nancy Pelosi’s visit to Taiwan. Copper and gold prices were negatively impacted by the resultant strength of the U.S. dollar, which was compounded by an increase in yields.
Fears that the Fed’s aggressive interest rate increases would reduce the world’s demand for gasoline are likely to keep the market in a gloomy mood.
Recent coronavirus developments acted as an additional negative factor for oil prices. The decline in the oil markets persists. Traders are concerned that a looming recession may depress oil demand. Tomorrow’s EIA report will reveal whether domestic oil output in the United States continues to rise.
WTI recovers from its largest daily loss in a week near key support. Bearish MACD signs, a declining RSI, and the inability to breach the 21-day EMA all favor selling. The convergence of the two-month-old support line and the 100-day exponential moving average inhibits additional declines.
As American traders returned to work on Tuesday after a holiday weekend, crude oil markets rose once again during Tuesday’s trading session.