FxNews—WTI crude oil prices dropped to approximately $70 per barrel this Tuesday, following a nearly 2% increase the day before. This decline reflects a negative market sentiment toward crude oil’s future.
The 4-hour chart below demonstrates the price, support, and resistance levels.
China Lowers Lending Rates Amid Oil Demand Concerns
On Monday, China lowered its principal lending rates to boost its economy. Despite these efforts, there are ongoing worries about the demand for oil from this major importer as the market seeks more concrete signs of economic recovery.
The trading community remains cautious, anticipating a potential increase in oil supply. OPEC+ plans to ramp up production in December, which could lead to a surplus in the global oil market, further affecting prices.
Blinken’s Ceasefire Efforts Keep Oil Markets on Edge
U.S. Secretary of State Antony Blinken’s recent visit to the Middle East to promote a ceasefire has kept the markets on edge. Investors are particularly attentive to developments that might disrupt the oil supply, including Israel’s reaction to recent missile attacks from Iran and its proxies.