Overnight Market Review (2022.9.29) WIT struggled near the $80 mark, a bearish catalyst has been weighing on the oil market. However, he believes that oil prices are expected to rebound, considering factors such as insufficient OPEC production and the final stop of the release of the Strategic Petroleum Reserve.
Almost all of the negative news in the oil market this week has come in, including a global recession, Fed tightening, a stronger dollar, slumping demand in Asia and rising inventories. WTI crude oil prices closed below their 200-day moving average of $89.00 on Friday and are now below $80 for the first time since Jan. 11 this year. $70 is an important psychological level for WTI crude prices, and a break below that level would see producers slash capital spending to boost prices.
Trading strategy deployment: it is recommended to go short at high levels
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