• WTI crude futures fall below $83 per barrel after 7-week rally on global supply tightening.
• China-related uncertainties and stronger dollar contribute to the decline.
• Concerns persist about sluggish economic recovery in top crude importer China.
• Awaited data on industrial production, retail sales, and employment add to market anticipation.
• Stronger US producer inflation report prompts bets on prolonged higher interest rates by the Federal Reserve.
• Dollar’s rise pressures dollar-denominated commodities, including oil.
• Oil prices surged over 20% in 7 weeks due to supply cuts by OPEC+ majors Saudi Arabia and Russia.
• International Energy Agency predicts supply cuts will erode oil inventories for the rest of the year.
• Global crude demand could reach record 103 million barrels a day, according to IEA projections.

Crude oil has experienced a decline of approximately 1.1%, currently trading around $82 per barrel. This drop is influenced by a slightly higher dollar and positive volatility, which are exerting downward pressure on the price, driving it closer to the swing lows.

The previous volume profile demonstrates a balanced structure, prompting traders to potentially lean on the extremes in order to draw conclusions about rotational scenarios. As the market nears the lower extreme, buyers could be waiting for an opportunity to enter.

On the daily interval, there seems to be some weakness observed around the price highs, positioned above the Year’s developing value area. The price action might target the upper value extreme, with the potential for absorption around the lows of the prior session, potentially boosting buyers’ sentiment.

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