WTI slides lower post CPI reading

Following the US CPI inflation reading for February, which increased at an annualised 6% pace, in line with predictions and down from 6.4% in January, oil prices are falling in noon trading.

Inflation in the United States remains far over Fed’s target, raising the possibility of a recession, particularly in light of ongoing banking sector worries that are posing a threat to GDP and demand-driven commodities like oil.

WTI crude oil is down by almost 4% on the day presently and printing fresh session lows in New York at the time of writing at $71.58 per barrel. The daily charts display the price fluctuating laterally between a wide range of $70.10 to $83.32, in a succession of lower highs. Above $77.50, there is a price imbalance that is in the grey area; nevertheless, momentum is with the bears below $74.80, and liquidity is calling below $70.10.

Being on the backside of the bearish trend, though (broken bear trendline), this may be a phase of accumulation and a clearing out of stale stops below $70.10 may result in an increase in demand in the future. The bears are in charge, though.