Oil, as well as other energy commodities, are pulling back today. Brent and WTI trade almost 4% lower while gasoline and US natural gas prices drop over 4%. Move looks to be driven by overall concerns over the condition of the global economy, with re-emergence of US banking problems being one of prime fear drivers. Apart from that, OPEC+ currently seems unwilling to intervene to support prices, what also adds to pressure.
- US banking sector issues have been reignited with collapse of First Republic Bank, boosting recession risk for the United States
- Back in March when US banking issues first arose, oil took a significant hit
- Chinese post-Covid demand recovery continues at a slower than expected pace
- Russia's Novak said that OPEC+ monitors oil price drop but it may turn out to be temporary
- No changes have been made to meeting schedule - oil producers are still set to meet no sooner than June
- WTI drops below $69 and trades at the lowest level since March 24, 2023
- Brent tests mid-March lows in $72.50 area
- US natural gas prices drop below $2.20 to the lowest level since mid-April
WTI (OIL.WTI) continues pullback after failed attempt to break above the upper limit of the Overbalance structure and 200-session moving average (purple line). WTI plunged below $73 price zone yesterday and continues to drop hard today. A test of $67 support zone looks probable, especially if Fed warns of rising recession risk today. Source: xStation5
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile app
Significant declines can be spotted all across the energy commodity market today. Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
