Overnight Market Review (2022.10.12) Oil prices fell further on Tuesday as the market reassessed the OPEC+ production quota cuts and the International Monetary Fund (IMF) warned of an increased risk of a global recession. During the Asian session on Wednesday (October 12), Brent crude oil fluctuated in a narrow range and is currently trading around $93.68 per barrel, not far from the three-day low set overnight.
Oil prices fell again over the weekend and Monday as the fallout from last week’s OPEC+ meeting began to fade. DATA SHOW: Markets were warned on Monday that the risk of a global recession was growing, noting that inflation was an ongoing problem. Oil prices continued to fall on Tuesday.
Fears of a recession have been a steady undercurrent in the oil market of late, as have the overall tightness in the energy market and the unknown but critical variable of future oil demand in Asia. But any pessimism was overwhelmed last week after OPEC+ decided to cut its November oil output quota by 2 million bpd.
Trading strategy deployment: it is recommended to go short at high levels
All transactions involve risks, the above analysis is for reference only. When placing an order, be sure to set the lot size and remember to set the stop loss.