Monday appears a day weaker for crude oil prices. Fragile data released by China and a recession globally damp down the demand for oil. Moreover, investors are keeping an eye on the conversations done by the European Union which relates to the prohibition of Russian oil. As a result, tightens the supply of oil globally.
There were worries related to recession and strict lockdowns which were traveling all around the globe. Therefore, creating pressure on the prices of crude oil.
Due to stringent lockdown or recurrent increase in the number of coronavirus cases in China, the biggest importer of oil influences the prices of oil adversely.
Alongside equities are going down bit by bit but the dollar is consistently in a beating mode thereby hitting one after highs.
However, oil is becoming expensive for those holders who are holding different forms of currency.
The financial market is in a worrying phase. Precisely, due to an increase in interest rates, recession, and lockdowns growth in export slows down.
If we look into the imports of crude oil by China, then the demand rises nearly by 7 percent in the month of April which was earlier down by 4.8 percent in the past year.
Due to the chop up in the prices of oil by Saudi Arabia, there may be a fall in the demand globally, sources revealed.
Saudi Arabia which is the largest producer of oil lowers the crude oil prices for Europe and Asia for the month of June.
Moreover, Brent Oil lost nearly 0.4 percent a barrel thereby influencing the demand adversely in the global financial market.
Technical View:
Crude oil is showing an overall positive trend. Traders may buy around 7900 levels thereby maintaining a strict stop loss of below 7600. Furthermore, we may see an upward target of 8400 level.
All eyes are on the OPEC meeting. Till then, we may see both ways trend.
Traders do not go for aggressive buying or selling at current levels. However, it is advisable to pick a trade cautiously thereby sitting on the sell side.