Oil Prices Decline Due to Stronger US Dollar

A stronger US Dollar, rising central bank rate hike bets and China’s ongoing Covid lockdowns weighed on the commodity. Also, the global recession fears on the increase. Goldman cut its US2023 GDP forecast from %1.50 to %1.10 after increasing its outlook for FED hike forecasts. Shortly, the demand for black metal is diminishing, while global economy is slowing.

Technically, 50-Daily Moving Average (DMA) crossed the 200 DMA for the downside. the brent price below 90.50 gives way to heavy sell up to 87.25 level. On the upside, we follow 92.95 level as the first resistance level. The expected trading range for today is between 89.30 support and 92.95 resistance.

• Support: 90.50 – 89.30 – 87.25
• Resistance: 92.95 – 94.65 – 95.80