Weekly Oil Report: Fears of Recession Erupts in Commodities

On Friday, Brent oil closed at $75.84 and WTI settled around $71.20. Watch crude technical analysis and comment your ideas:

Crude oil shocked the market with the 7th consecutive month of falling. While most traders didn’t expect a sharp drop in the first week of December, the fear of recession suddenly took over. The yellow support is still valid and strong at 71 and the price is hanging on the pivot point area.

The bearish sentiment of the market is getting stronger due to negative reports of big economies and demand. Risk of recession is rising in the US, China, and several other countries. Central banks are increasing their gold reserves rapidly which can be a sign of hard days coming.

China’s new policies look to be ineffective in boosting property and aviation. Both industries haven’t shown any progress.

In addition to lower demand, EIA and American Petroleum Institute show oil and gasoline inventory builds last week.

Fuel and bitumen are also uncertain and as we get closer to the end of 2023, demand normally decreases. However, the prices have become so much attractive that some buyers push their purchases forward. In general, high volatility of fuel is not very promising for the market’s future.

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