Wti Weak On Bearish Bias

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Wti Weak On Bearish Bias

Wti Weak Above $70.00 On Bearish Bias

West Texas Intermediate (WTI) managed to make a bounce near the $69.25 but seems to have stalled. Now, the oil is struggling to build up on the earlier bounce and thus is just marginally above the 2-week lows.

In fact, WTI is also attracting some sellers as it is trading just above $70 with some mild losses. The trading price for West Texas Intermediate (WTI) is around $70.25, with a change of -0.30% for the day.

Wti Next Support Is At $68.00

Given the technical analysis of the West Texas Intermediate (WTI), there's a good chance that it is highly vulnerable and will likely decline further.

Meanwhile, the geopolitical tension is also high, but there is very little chance of a major supply disruption of oil. So, that's also a reason why the WTI prices are still under pressure.

Amidst all of this, the oil imports of China have declined once again. This marks the 5th month in a row of consistent decline in the Chinese import of oil products. This has cast serious doubts on the economic health of China and the Oil demand as a whole.

Recently, OPEC has also issued its report on the global oil demand growth. According to them, the demand for oil will be low in 2024 and 2025. This is in line with the Chinese economic conditions and the weakness in the Oil prices.

Additionally, the US Dollar appears to be still strong as it is sitting at the highest level only seen on 8th August. Also, the chances of less aggressive rate cuts from the Fed are very high, with everyone citing a 25 bps cut as the best possibility.

In general, a stronger US Dollar leads to less demand for commodities, which also supports weakness in the West Texas Intermediate (WTI). So, it could mean that the recent fall in WTI from $78.00 is totally justified given the current conditions.

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