WTI Crude Oil Prices Face Third Consecutive Weekly Loss

West Texas Intermediate (WTI) Crude Oil prices climbed to $76.00/barrel during the Asian session, attracting some buyers. However, the commodity remains near its lowest level since July 21, indicating a potential third consecutive week of losses.

Investors anticipate that the Federal Reserve (Fed) will need to maintain higher interest rates for longer to address persistent inflation, raising concerns about economic headwinds from rising borrowing costs. Manufacturing sectors in the US, Europe, and China have reported worsening business conditions, further dampening crude oil demand.

Reduced risk premium over Middle East supply disruptions and increased US and Iranian crude production suggest oil markets may not be as tight as expected. Commitments from major producers Russia and Saudi Arabia to maintain supply cuts until year-end offer little support to crude oil prices.

The recent US Dollar (USD) recovery, driven by expectations of another Fed rate hike, supports a potential near-term depreciation for the USD-denominated commodity. Technical indicators suggest the path of least resistance for crude oil prices is downward. Any recovery could be viewed as a selling opportunity with limited staying power.

WTI had more selloffs and broke solid support at 87 and now continuing toward the next target at 74.

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
90	84	82	77	74	68