Oil prices were able to brush off this week’s negligible supply hike by OPEC+, only to succumb to growing fears of a looming recession amid the ongoing global wave of rate hikes.
Brent oil has been dragged below its 200-day simple moving average to test its mid-July low for support, while the 50-day SMA has crossed below its 100-day counterpart.
Rising US crude stockpiles have added to the idea that demand for oil in the world’s largest economy is retreating, while China’s fragile recovery is further clouding oil’s outlook.
The narrowing of differentials in Brent’s prompt spread also point to markets becoming less bullish about oil’s near-term performance.
Should today’s nonfarm payrolls data exceed market forecasts, underscoring a still-resilient US jobs market, that may help shore up immediate support for oil prices.