Recession fears and possible cuts in US fuel taxes put pressure oil
Oil prices resumed a very strong downward move following a strong pullback at the end of last week. Crude oil is losing almost 7% and WTI oil is dropping below the 100 day average for the first time since late December. Moreover, the majority of gains caused by the war in Ukraine has already been erased. Crude oil is losing due to the recession concerns and the plans of the US administration, which are considering suspending the fuel tax for 3 months, which would encourage producers to increase production and processing of crude oil. At the moment, however, the oil sector is not very happy with the temporary solutions, and wants declarations that will ensure the sector's existence in the long term. Let us recall that it was mainly the decisions of the administration that led to a significant drop in processing capacity in the USA (over 1 mbd).
OIL.WTI, D1 interval. Source: xStation5
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