Oil Remains Below Uptrend Line
11 July 2022
As sentiment deteriorated notably on Monday, WTI oil was slammed and dropped nearly 4% ahead of the US session, falling toward 101 USD.
Investors remain cautious, expecting a global recession amid soaring inflation and tightening monetary policies worldwide.
Russia predicts a collapse
According to oilprice.com, Vladimir Putin, the president of Russia, believes that as long as his nation is subject to sanctions, Europe will suffer catastrophic energy repercussions.
"We know that the Europeans are trying to replace Russian energy resources. However, we expect the result of such actions to be an increase in gas prices on the spot market and an increase in the cost of energy resources for end consumers," Putin said at a televised meeting with senior officials on Friday.
Putin claims that this will lead to Europe feeling the effects of the sanctions more severely than Russia (which is already happening). Putin warned that "further use of sanctions may lead to far more severe—without exaggeration, perhaps catastrophic" effects on the world energy market.
So far, the price remains below the long-term uptrend line, which could be bearish. It looks like oil might decline toward the 200-day average (the purple line) at 94 USD.
Alternatively, if the black gold advances back above the uptrend line (currently near 107.50 USD), bulls might reenter the market, possibly pushing the price back to 120 USD. But for now, the outlook seems negative.