Oil prices inch lower as Fed, China fears dent outlook.

Tuesday’s Asian trading saw a modest decline in oil prices due to growing concerns that demand will be hampered by longer-term increases in U.S. interest rates, as well as fresh worries about the state of the Chinese economy.

Oil prices suffered because of the dollar’s strength, which caused crude prices for foreign purchasers to increase due to the Federal Reserve’s hawkish signals, which caused the greenback to reach a 10-month high.

Markets also became more cautious about further rate hikes in the United States, which are anticipated to have a negative impact on economic activity this year and perhaps reduce demand for crude. Recently, the Fed issued a warning that rising energy expenses in the wake of rising oil prices would probably boost inflation and increase the need for higher interest rates.

In addition to Fed-related challenges, experts’ deteriorating views of China’s growth prospects this year led to new concerns about an economic slowdown in the world’s top oil importer.

The U.S. Federal Reserve and the European Central Bank, two of the most influential economic authorities in the world, have recently reaffirmed their commitment to fighting inflation, suggesting that tight policy may last longer than initially thought. Higher interest rates stifle economic expansion, which lowers the demand for oil.

BRENT CRUDE OIL TECHNICAL ANALYSIS DAILY CHART:

Technical Overview

Brent Crude Oil is currently trading within a down channel.

Brent Crude Oil is positioned below all Moving Averages (SMA).

The Relative Strength Index (RSI) is in the neutral zone, while the Stochastic oscillator suggests a negative trend.

Immediate Resistance level: 92.11

Immediate support level: 91.10

HOW TO TRADE BRENT CRUDE OIL

Following a significant price increase, Brent Crude Oil’s price fell off a resistance area. A further decline in price is possible if the support zone, which the price is now nearing, is broken.

TRADE SUGGESTION- STOP SELL – 90.56, TAKE PROFIT AT- 88.94, SL AT- 91.68.