WTI oil falls below $70 on demand concerns

WTI oil price continues to fall and lost around 6.5% of its value in last three days, with fresh bearish acceleration on Monday, breaking well below psychological $70 (the session low in Europe was $67.66).

The sentiment was soured by growing concerns about China’s demand, after recent economic data showed lower than expected pace of recovery in world’s second largest economy and rising Russian crude supply, which offset Saudi Arabia’s pledge to cut production by 1 million barrels per day to boost prices.

Weak technical studies on daily chart (MA’s turned to full bearish setup and negative momentum is rising) support the action, which eyes initial target at $67.02 (May 31 low), guarding $64.34 (Mar 20 low) and $63.63 (2023 low of May 4).

Close below $70 is seen as minimum requirement to keep bears in play, while daily close below broken Fibo support at $68.75 (76.4% of $67.02/$74.33) will strengthen bearish stance.

Res: 68.75; 70.00; 70.43; 71.45
Sup: 67.66; 67.02; 65.81; 64.34