WTI oil continues its ups and downs
Oil prices continue to seesaw this week. Emerging recession fears from the sharp slowdown in major economies since the start of the year are increasingly offsetting supply concerns fueled by the OPEC+ production freeze and Western sanctions against Russia.
Oil prices are likely to continue to seesaw in the coming weeks until a major shift in market fundamentals occurs. Among the changes, the most probable seems for the moment a continuation of the deterioration of the economies, which should increase the pressure on oil prices.
On the demand side, unless China and/or India decide to sanction Russia for its behavior in Ukraine, supply pressures should remain elevated but not deteriorate much further.
In the very short term, the price of a barrel could however regain height following the progress of the discussions on the embargo of Russian oil by the Europeans and the possible reopening of the Chinese economy following the drop in contamination, unless that new data will fuel recession fears.
WTI Oil Price Daily Chart – Key Levels