WTI Chart Technical Outlook Oil drops on demand concerns, approaching key support at $77.70
Crude oil is heading lower on Tuesday as market concerns that the global economic slowdown will trigger a decline in demand have offset the extension of output cuts by some OPEC+ members.
The unexpected decline in China’s Caixin Services PMI confirms the uneven recovery of the world’s second-largest economy, with no big stimulus measures announced by the National People’s Commitee.
In the US, Fed officials continue pushing back hopes of interest rate cuts. The “higher for longer” scenario is expected to weaken economic growth and weigh on demand for crude.
From a technical perspective, WTI prices are approaching the base of a rising wedge, at $77.70. Below here, the next targets are $77.79 and $73.45. Resistances are $79.60 and $80.95.
