WTI Price Analysis: Marks New Nine-Day Low at $67.60 as Global Recession Fears Grow

• The price of oil has hit a new nine-day low, sitting at $67.60, amid gloomy economic forecasts.
• In their fight against stubborn inflation, central banks sharpen their quantitative measures by raising interest rates.
• Oil prices have been consolidating in a range of $66.95-$74.70 for a month and a half.

West Texas Intermediate futures (WTI) have returned to a nine-day low at $67.60 as investors expect a further decline in global oil demand due to continued tightening by central banks.

In their fight against stubborn inflation, central banks are sharpening their quantitative measures with interest rate hikes whose consequences are weighing on global economic prospects.

The Dollar Index (DXY) is in a correction phase after posting an intraday high of 103.17. The Dollar Index has fallen to near 102.80; however, the bullish bias remains strong amid risk aversion.

Oil is consolidating in a range of $66.95-$74.70 for a month and a half on a daily scale. The broader behavior of the range indicates a pure volatility contraction, but a breakout of the range follows. The 50 period EMA at $72.20 has acted as a tough roadblock for oil bulls.

The Relative Strength Index (RSI) (14) is about to enter the bearish range of 20.00-40.00. If it occurs, the bearish momentum would be activated.

A move below the May 31 low at $67.12 will drag WTI towards the $65.00 support followed by final support around $64.31.

In an alternate scenario, a strong recovery above the May 24 high of $74.70 will drive WTI towards the April 28 high of $76.84. A recovery above this last level would expose the price of oil to the April 26 high of $77.86.

WTI daily chart