WTI oil outlook: Oil bounces on fresh supply fears but growing signs of global recession weigh

WTI oil

WTI oil regained traction and bounced around $3 on Friday, on revived supply fears on almost total shutdown of production in OPEC member Libya, due to unrest in the country.

Fresh strength correct strong fall on Wednesday, when the US announced measures to lower record fuel prices, although oil price is on track for the second consecutive weekly loss, as fears that rising interest rates would slow already fragile growth and push global economy into recession.

Technical picture on daily chart is overall bearish but signals are mixed, as negative momentum remains strong, but stochastic reverse from oversold territory and RSI turned north.

Fresh recovery was also attracted by next week’s daily cloud twist and pressures broken trendline support at $106.96 (bull-trendline off Apr 11 low), close above which would add to positive near-term signals, however more evidence of reversal would require lift above psychological $110 barrier and June 31 lower top at $111.13.

Res: 106.96; 108.28; 109.09; 110.00.
Sup: 105.40; 104.66; 103.61; 102.30.

Interested in WTI technicals? Check out the key levels