Market Analysis: Oil Prices Fall to Lowest Level since July

<img src="https://fxopen.com/blog/en/content/images/2023/11/oil___1.jpg" alt="Market Analysis: Oil Prices Fall to Lowest Level since July" /><p>As the chart shows, the price of WTI oil has dropped below USD 77.50 – the last time prices were this high was in mid-July.</p><p>The decline in oil prices was contributed to by:<br>→ first, easing concerns about the escalation of the military conflict in the Middle East and interruptions in the supply of oil produced in the region;<br>→ secondly, the data from Beijing. While China&apos;s crude oil imports rose in volume and value in October, the country&apos;s total exports fell 6.4% year on year, more than expected, CNBC reports. This points to a slowdown in demand in a world where central banks in many countries are keeping interest rates high to combat inflation.</p><p>Thus, supply forces prevail despite the fact that Russia and Saudi Arabia announced continued restrictions on oil production amid the conflict in the Middle East.</p><figure><img src="https://fxopen.com/blog/en/content/images/2023/11/81–2-.png" alt="Market Analysis: Oil Prices Fall to Lowest Level since July" loading="lazy" width="2000" height="1099" srcset="https://fxopen.com/blog/en/content/images/size/w600/2023/11/81–2-.png 600w, https://fxopen.com/blog/en/content/images/size/w1000/2023/11/81–2-.png 1000w, https://fxopen.com/blog/en/content/images/size/w1600/2023/11/81–2-.png 1600w, https://fxopen.com/blog/en/content/images/size/w2400/2023/11/81–2-.png 2400w" sizes="(min-width: 720px) 720px" /></figure><p>The oil price chart today shows that:<br>→ the market is oversold, judging by the RSI indicator;<br>→ the price is near the lower border of the downward channel.</p><p>Therefore, the market is vulnerable to some price recovery from the oversold zone. If this happens, the price will form a false breakout of the August lows and could then test the USD 80.00 level. It is possible that this psychological level, which provided support on November 1-3 after yesterday&apos;s bearish breakout, will act as resistance — similar to what happened with the USD 82.50 level.</p>