The oil market is under pressure on fears of a slowdown in the global economy

On Wednesday, July 6, oil trading closed lower. Brent crude fell 2.80% to $99.98 per barrel. In two days, the price fell by 14% amid expectations of a slowdown in the global economy and lower demand for energy resources. The fall of the dollar rally was intensified due to the collapse of the single currency. The topic of recession is now a key factor for the oil market.

According to the minutes of the US Federal Reserve meeting, the participants of the June meeting agreed that the inflation forecast has worsened, which guarantees a significant increase in the rate by 75 percentage points. The Fed is ready to slow down the economy just to bring inflation under control.

At 18:00 Moscow time, the US Department of Energy will publish a report on oil reserves and petroleum products for the week from June 27 to July 1. According to the American Petroleum Institute (API), oil reserves increased by 3.825 million barrels (forecast was -1.1 million). Gasoline inventories fell by 1.814 million barrels (forecast was -0.5 million), distillate stocks - by 0.635 million barrels (forecast was +1.1 million).

The fall stopped at the key support of $100 per barrel. Technical break 108 and drop to support on the daily TF the scales have shifted to the side of the sellers. If weaving fails, we go to the zone 85-90.