Commodities and Futures News

Oil Keeps Tumbling as Bears Eye Low $70s for U.S. Crude

2022.09.26 15:11



© Reuters.

By Barani Krishnan

Investing.com — The selloff in oil showed no signs of slowing on Monday as bears in control of the market doubled down on their bid to get U.S. crude to the low $70s and possibly beneath.

New York-traded , which serves as the U.S. crude benchmark, settled at $76.71 a barrel, down $2.03, or 2.6%, on the day, and 40% lower from its March high of around $130. 

With September trading due to end this week, WTI is also down 13% so far on the month. Aside from that, it is headed for its first losing quarter since 2020, with a decline of 27% as of Monday for the July-through-September period.

, the London-traded global benchmark for oil, settled at $84.06, down $2.09, or 2.4%, on the day and some 40% off from its March peak of almost $140. Brent is also 13% lower on the month, and off 28% for the third quarter. 

Investors have fled from risk across markets as global central banks, led by the U.S. Federal  Reserve, embark on the most aggressive rate hikes in four decades to fight inflation.

The Fed has by 300 points this year and plans to add another 125 by December, after starting from a base of just 25 in February.

Its action has sent the U.S. currency flying, with the , pitted against the euro and five other rivals, hitting one continuous 20-year high after another. A stronger dollar is typically bad for commodities priced in dollars, such as crude, as it makes them costlier for anyone using the euro and other currencies.

Monday’s peak of 114.42 for the so-called DX trading symbol in the dollar was the highest since its April 2020 high of 118.950.

While the rate hikes and the recession they might bring to the global economy have led the risk aversion across markets, the bears in control of oil were also looking at technical indicators that could heighten the selloff, said analysts.

“The catalyst might be economic fundamentals but there’s certainly a target to it, and that target is absolutely technical,” said Sunil Kumar Dixit, chief technical strategist at SKCharting.com. “For now, it’s $72 WTI and, if that breaks, it will be $63.”

Dixit breaks down his reading to this: With little respite for the Dollar Index’s climb, downward momentum builds on WTI to breach its 200-month Simple Moving Average of $72, before the more important test of the 50-month Exponential Moving Average of $63.



Source link

Related Articles

Leave a Reply

Back to top button
bitcoin
Bitcoin (BTC) $ 76,080.38 1.56%
vested-xor
Vested XOR (VXOR) $ 3,405.08 99,999.99%
ethereum
Ethereum (ETH) $ 2,849.73 6.82%
tether
Tether (USDT) $ 1.00 0.03%
solana
Solana (SOL) $ 195.30 4.58%
bnb
BNB (BNB) $ 599.56 2.32%
usd-coin
USDC (USDC) $ 0.999913 0.09%
xrp
XRP (XRP) $ 0.552466 3.28%
dogecoin
Dogecoin (DOGE) $ 0.192955 0.78%
staked-ether
Lido Staked Ether (STETH) $ 2,849.46 6.84%
cardano
Cardano (ADA) $ 0.390088 9.75%
tron
TRON (TRX) $ 0.160326 2.08%
the-open-network
Toncoin (TON) $ 4.88 2.79%
wrapped-steth
Wrapped stETH (WSTETH) $ 3,377.99 7.66%
avalanche-2
Avalanche (AVAX) $ 27.47 3.68%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 75,907.34 1.39%
shiba-inu
Shiba Inu (SHIB) $ 0.000019 1.21%
weth
WETH (WETH) $ 2,848.44 6.75%
chainlink
Chainlink (LINK) $ 12.39 4.24%
bitcoin-cash
Bitcoin Cash (BCH) $ 381.38 2.47%
sui
Sui (SUI) $ 2.32 2.89%
polkadot
Polkadot (DOT) $ 4.13 1.29%
leo-token
LEO Token (LEO) $ 6.25 0.14%
usds
USDS (USDS) $ 1.00 0.10%
uniswap
Uniswap (UNI) $ 9.04 2.12%
litecoin
Litecoin (LTC) $ 71.59 2.97%
wrapped-eeth
Wrapped eETH (WEETH) $ 2,999.74 6.79%
near
NEAR Protocol (NEAR) $ 4.20 1.55%
aptos
Aptos (APT) $ 9.66 3.50%
pepe
Pepe (PEPE) $ 0.00001 10.65%
bittensor
Bittensor (TAO) $ 510.63 1.87%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.41 0.34%
internet-computer
Internet Computer (ICP) $ 7.68 0.58%
dai
Dai (DAI) $ 1.00 0.15%
monero
Monero (XMR) $ 166.32 2.28%
ethereum-classic
Ethereum Classic (ETC) $ 19.96 3.74%
kaspa
Kaspa (KAS) $ 0.118631 0.07%
stellar
Stellar (XLM) $ 0.099776 3.73%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.10%
aave
Aave (AAVE) $ 185.58 9.44%
whitebit
WhiteBIT Coin (WBT) $ 19.42 0.69%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.343302 4.56%
blockstack
Stacks (STX) $ 1.67 0.58%
crypto-com-chain
Cronos (CRO) $ 0.090724 7.50%
okb
OKB (OKB) $ 40.26 3.08%
dogwifcoin
dogwifhat (WIF) $ 2.36 0.83%
first-digital-usd
First Digital USD (FDUSD) $ 0.997313 0.63%
arbitrum
Arbitrum (ARB) $ 0.575291 9.14%
mantle
Mantle (MNT) $ 0.667099 12.98%
filecoin
Filecoin (FIL) $ 3.73 2.66%