Oil prices keep going down. The situation is mainly caused by fears connected with the European and Chinese economies. Another major factor contributing to the decline is the absence of any clear signs of Federal Reserve’s further monetary policy.
The WTI (Light Sweet Crude Oil) futures contract for August delivery has depreciated by 0,46% or $0,41 down to $88,81/b. The Brent futures contract for September delivery has lost $0,3 or 0,29% and is now valued at $103,7/b.
China’s Premier Wen Jiabao says that the situation in the domestic labor market is negative. There are risks that the world’s 2nd largest economy will slow down even more, thus affecting oil prices.
According to , the WTI oil futures contract is still forming a short/mid-term rally. July’s high - $88,98/b – is broken. The next level of resistance is $89.94/b. The bullish trend may be reversed only after the price breaks and consolidates below the mF pivot (as shown below):
