The price of West Texas Intermediate (WTI) crude oil has seen a significant decline, dropping over 20% from its peak in early March.
Various factors have contributed to this downward trend:
The outlook for oil prices remains complex, with potential for both further declines and upward pressure depending on unfolding events.
Recent discussions between Ukraine and Russia have sparked cautious optimism among investors, but the situation remains uncertain. Economic developments in China, such as new lockdown measures in Shanghai, are raising concerns about global oil demand. The US administration's decision to release oil from its strategic reserves and Russia's offer of discounted oil prices to India are also impacting the market.
Despite short-term pressures, certain fundamental factors suggest that prices could remain elevated:
Technical analysis indicates that WTI oil prices are navigating critical support and resistance levels, with analysts closely monitoring key indicators. Traders and investors are advised to stay vigilant as geopolitical developments and economic indicators will continue to shape the future of oil prices.