Crude oil WTI is down by about 0.5% while bouncing back towards $91 from the lower value extreme of the month’s VWAP. The market was trading briefly below $90 in the European trading session.

The oil market is pressured by concerns of a global economic slowdown which may hurt energy demand and lead to tightening supply.

Central banks around the world are tightening their monetary policy and lifting interest rates higher to fight the inflationary rising prices which may lead to lower demand for a pressured oil price.

Additionally, Covid outbreaks in major Chinese cities of Shenzhen, Guangzhou, and Dalian placed millions under lockdowns and might result in slow economic activity in the second largest economy.

Clashes in Iraq did not affect the OPEC output for the moment while the New York trading session found some short covering. OPEC will meet in September for production policy while the Energy minister of Saudi Arabia mentioned that a revival of the Iran 2015 deal would lead to a production cut which eventually would be a bullish factor for the crude oil price.

The daily interval found some supportive core buyers around the Year’s lower value extreme and raised the price back into the Quarter’s value area. The mentioned levels were confluent with the month’s lower standard deviation level of the VWAP which brought buyers and short covering into the market.

The short-term to median-term perspective may targeting rotations towards the upper-value extreme of the Quarter’s view which stands around $100. The secondary target may lay around $112, depending on the auction around the mentioned Quarter’s DVAH and the Year’s VWAP.

The month fell by about 7.7% the third month in the row while the market found some core buyers around the Decade”s upper-value extreme. Support is depending on the potential output cut which may lead to median-term long buyers.

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