Brent is attempting to hold steady, having plunged back below the psychologically-important $100/bbl mark this week and trading below its 200-day simple moving average (SMA) once more.
Oil’s latest declines come hot on the heels of three straight months of losses – its longest such losing streak since the onset of the pandemic.
Brent has also now halved its year-to-date gains down to 27.5% at the time of writing.
Oil’s plunge this week has been driven by the risk aversion felt across global financial markets, amid fears that the wave of rate hikes around the world are in turn ramping up recession risks.
The outlook for global demand is further soured by Chengdu’s lockdown as part of China’s ongoing Covid Zero campaign.
This dollar-denominated commodity also has been weighed down by the greenback’s latest ascent.
Brent could see a knee-jerk spike back up to $100/bbl if OPEC+ unexpectedly decides on Monday to lower its production levels, even with Saudi Arabia having publicly lamented the “extreme” volatility and disconnect between oil futures and fundamentals.
Such a surprise move by OPEC+ may also in turn shore up support for oil prices, even as demand-side woes continue swirling about markets.