West Texas Intermediate (WTI) oil extends its slide from the $104.00 break

June 23, 2022 - 2 weeks ago
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West Texas Intermediate (WTI), the benchmark for New York-traded crude oil prices, extended its slide and tumbled over -2% in early trade on Thursday, as mounting concerns continue about the risks of a global recession amid aggressive rate hikes by the U.S. Federal Reserve.

While testifying before the Senate Banking Committee, Powell said, “Over coming months, we will be looking for compelling evidence that inflation is moving down, consistent with inflation returning to 2%.”

“We anticipate that ongoing rate increases will be appropriate; the pace of those changes will continue to depend on the incoming data and the evolving outlook for the economy.”

U.S. Powell is due to testify again in Washington DC on Thursday (Friday, 12 am Sydney time).

The U.S. Energy Information Administration said its weekly oil data, which was scheduled for release on Thursday, will be delayed due to systems issues until at least next week.

Based on the technical assessment, the Relative Strength Index (RSI) 3-daily ‘lookback’ indicator is negative but oversold, while the Moving Average Convergence Divergence (MACD) oscillator supports a negative signal. The ADX indicator holds a ranging market (no trend).

With the recent call to $104.00-30 now crushed, the assessment at present is neutral as the market may soon again display much volatility.

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