Rate hikes will slow down the markets
Oil is testing 85 resistance and weak demand news are limiting its potential rises. Rate hikes will slow down the markets and demand for oil will go down. This is the main motivation of Sell-Offs these days. First support on a decline will be $79.75 and first resistance to be tested is $85.73 Level.
WTI crude futures steadied around $85.5 per barrel in subdued trade on Tuesday, as investors moved to the sidelines ahead of an expected interest rate hike from central banks across the globe this week. The US Federal Reserve and other central banks from Europe to Asia are expected to tighten further as they aim to curb elevated inflationary pressures, stemming overall demand and clouding the outlook for global growth. On the supply side, the US said it would release an additional 10 million barrels of oil from its strategic reserves as a looming European Union ban on Russian oil is set to take effect in December. Meanwhile, easing Covid-19 restrictions in top importer China provided some optimism to the markets. OPEC+ also fell short of its oil production target by 3.583 million barrels per day in August after missing its target by 2.892 million bpd in July, in a sign that major producers are struggling to increase output and meet demand.
USOIL - WTI