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Oil prices tumble on US/China data

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Oil prices tumbled on Friday after weaker consumer confidence data, tracing another leg lower in Asia after China’s data rose by far less than expected, triggering fears that its recovery is slowing. Virus fears also appear to be weighing on Asian sentiment in general, with markets casting a wary eye towards the evolution of the situation in China, particularly partial port closures.

 

On Friday, Brent crude fell by 1.30% to $70.20 a barrel, losing another 0.65% to $69.75 today in Asia. WTI sell by 1.40% to $67.95 a barrel on Friday, losing another 0.50% to $67.60 in Asia. Both contracts, in an ominous technical development, closed below their respective 100-DMAs on Friday.

 

Brent crude has resistance at $70.40 and then $72.00 a barrel, with support at $69.00 and then $67.50 a barrel. WTI has resistance at $68.25, $69.25, and then $70.00 a barrel. Support lies at $66.50 and then $65.00 a barrel. With financial markets now clearly more concerned about global growth and the global recovery this week than last week, oil’s downside remains the more vulnerable. 

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Jeffrey Halley

Jeffrey Halley

Senior Market Analyst, Asia Pacific, from 2016 to August 2022
With more than 30 years of FX experience – from spot/margin trading and NDFs through to currency options and futures – Jeffrey Halley was OANDA’s Senior Market Analyst for Asia Pacific, responsible for providing timely and relevant macro analysis covering a wide range of asset classes. He has previously worked with leading institutions such as Saxo Capital Markets, DynexCorp Currency Portfolio Management, IG, IFX, Fimat Internationale Banque, HSBC and Barclays. A highly sought-after analyst, Jeffrey has appeared on a wide range of global news channels including Bloomberg, BBC, Reuters, CNBC, MSN, Sky TV and Channel News Asia as well as in leading print publications such as The New York Times and The Wall Street Journal, among others. He was born in New Zealand and holds an MBA from the Cass Business School.
Jeffrey Halley

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Jeffrey Halley

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