OIL.WTI trades more than 8.0% lower on Wednesday as troubles in the global banking sector overshadowed the bullish outlook for oil demand. OPEC expects higher oil demand growth in China this year as the country abandons its zero-Covid policy. The International Energy Agency pointed to a massive boost from resumed air travel and China's economic reopening. On the supply side, Saudi Arabia said OPEC+ would stick to production cuts agreed upon in October until the year's end. From technical point of view, OIL.WTI price fell to the lowest level since December 2021 and is currently testing major support zone around $68.30, which coincides with 200 SMA (red line ) and 50.05 Fibonacci retracement of the upward move started in April 2020. Break lower would pave a way towards next major support at $53.40.
OIL.WTI, W1 interval. Source: xStation5
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