WTI Crude Oil (current price: $47.14)
Oil declined significantly on Tuesday as risk assets were hit hard across the board and as the U.S. Dollar rebounded against its peers. The crucial commodity lost almost 5% on the day to finish right at the key short-term support near $46.50. The level held oil in the past three weeks as the commodity was trading sideways, and the violation of the zone could lead to further technical selling, following the 4-month-long rally that took oil from $28 to $52.
Our assessment: Oil’s fundamentals are slowly improving, but the current worries regarding the global economy could cause a deep correction as the commodity remains severely overbought.
