Concerns over an economic slowdown inspired oil bears this week.
After collapsing like a house of cards back on Monday it’s been an uphill battle for the global commodity as negative fundamental themes keep prices capped. China growth fears and prospects of Iran moving closer to restoring a nuclear deal encouraged traders to attack oil.
Both WTI and Crude are heading for a weekly loss as growth concerns eclipse signs of improving demand in the United States. An appreciating dollar is likely to add to the pressure and fuel the downside momentum. Ultimately, oil prices remain pulled and tugged by various forces and this could translate to more volatility in the week ahead.
Looking at the technicals, Brent is under pressure on the daily charts. Sustained weakness below $97 could encourage a selloff towards $90.50 and $85, respectively