Oil prices are succumbing to macroeconomic pressures and are among the least-performing assets in the commodity market in 2024. On Wednesday’s opening bell, the West Texas Intermediate (WTI) oil prices briefly dipped below the $70 mark.
WTI is now hovering on the razor’s edge and is trading at $70. If it fails to maintain its resistance level, oil prices could fall to their 52-week low.
Also Read: Currency: Russia Imports $30 Million in US Dollar and Euro
Macroeconomic Pressures, Technical Levels, And Investment Advice
WTI Crude Oil Futures Index Performance
The WTI crude oil futures index fell to a low of 69.19 in the day’s trade and bounced back to the $70 threshold. The 52-week low for WTI stands at $67.98 and is now on the brink of falling to its yearly low. The commodity market is now at risk as weak oil prices could push other assets to trade in the red.
While the overall markets recovered after the early July US stock market crash, oil prices have yet to find resistance. WTI prices fell from a high of $92.48 this year and are attracting heavy bearish sentiments in the indices. Other assets in the commodity market, like gold, silver, copper, and the US dollar, remain on the greener side of the spectrum.
Also Read: NATO Member Officially Applies to Join BRICS
Commodity Market: Should You Invest in WTI Oil Now?
Oil, once considered a go-to investment in the commodity market, is now reeling under pressure. It has shed all the gains it accumulated this year, resulting in bearishness in the charts.
The losses come after concerns about supply and demand reaching new lows in the sector. Several countries have cut production outputs and are due to add 180,000 barrels to the daily supplies.
Also Read: Top Security Tips from Billionaire Crypto Investors
It is advised to avoid investing in WTI crude oil futures at the moment. The weakness could briefly pull the commodity market down in the coming weeks, causing oil prices to trade below the $67 mark.