Oil prices begin to decline after a 20% rebound in two weeks
Oil prices are beginning to decline after rebounding more than 20% in two weeks to one-month highs of around $92 for WTI and $98 for Brent on a backdrop of reduced supply. Indeed, oil prices have recently benefited from OPEC+’s decision to significantly reduce its production quotas, although they were not reached by several members of the cartel, and from Western sanctions on Russian hydrocarbons. .
Nevertheless, the strength of the dollar and the prospects of weakening demand are coming back to the fore, causing a slight decline in oil prices since Monday. The dollar extended higher on expectations that the US Federal Reserve will continue its aggressive monetary tightening while global recession fears also gripped markets.
JP Morgan CEO Jamie Dimon has warned that the US and global economies are at risk of sliding into recession by the middle of next year, while the IMF and World Bank have seen growing risks of a global slowdown . These fears of recession have been reinforced since Monday by the resurgence of Covid-19 cases in China, a week before the Party Congress, raising fears of new health restrictions in the country.
WTI Oil Price Daily Chart – Key Levels