Crude oil prices remained largely flat or slightly negative on Monday due to a stronger U.S. dollar and concerns about the Federal Reserve's hawkish stance on interest rates. Russia's adjustments to its fuel export ban had limited impact on the market.
New York-traded West Texas Intermediate (WTI) crude settled at $89.68 per barrel, down 35 cents (0.4%), while London-traded Brent settled at $93.29, up by just 2 cents (0.02%).
Oil prices had been rising since June, notably after Saudi Arabia and Russia announced production cuts. However, the 30% increase in oil prices over three months raised concerns about inflation.
The strong U.S. dollar discouraged buying of dollar-denominated commodities like oil. The Federal Reserve's projection of a rate increase further fueled this dollar strength.
Analysts worried that the Fed's hawkish stance might dampen global growth, but many agreed that controlling oil prices was necessary to achieve the Fed's 2% inflation target.
On a technical front, MACD is showing sell signs already, while RSI is still remaining neutral.
As a pivot point might be considered 89.75, from where the bears might start entering the market and drive the price to its support level of 89.24. But if the price continues to climb, it might reach the resistance of 90.29.
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New York-traded West Texas Intermediate (WTI) crude settled at $89.68 per barrel, down 35 cents (0.4%), while London-traded Brent settled at $93.29, up by just 2 cents (0.02%).
Oil prices had been rising since June, notably after Saudi Arabia and Russia announced production cuts. However, the 30% increase in oil prices over three months raised concerns about inflation.
The strong U.S. dollar discouraged buying of dollar-denominated commodities like oil. The Federal Reserve's projection of a rate increase further fueled this dollar strength.
Analysts worried that the Fed's hawkish stance might dampen global growth, but many agreed that controlling oil prices was necessary to achieve the Fed's 2% inflation target.
On a technical front, MACD is showing sell signs already, while RSI is still remaining neutral.
As a pivot point might be considered 89.75, from where the bears might start entering the market and drive the price to its support level of 89.24. But if the price continues to climb, it might reach the resistance of 90.29.
Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carries a high level of risk. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and on such sites. Furthermore, one understands that the company carries zero influence over transactions, markets, and trading signals, therefore, cannot be held liable nor guarantee any profits or losses.