Global oil prices slide to their lowest since January as growing concerns about global demand offset any bullish effects from an EU-led price cap on Russian oil sales.
West Texas Intermediate crude (WTI) down 3.51 % to $73.81. Brent crude down 3.80% to $79.18, the lowest since Jan. 6.
“It seems that the only thing guaranteed in the oil market for now is volatility,” Oanda analyst Craig Erlam.
Service-sector activity in China recently hit a six-month low and European economies have slowed due to the high cost of energy and rising interest rates.
Both benchmarks also trading below 30 on Relative Strength Index (RSI), a technical indicator used to determine if commodities or stocks are overbought or oversold.
A score over 70 on RSI indicates commodity is overbought, and its prices may drop as traders reposition bets, whereas score below 30 indicates oversold and the prices could see gains in near future.