• WTI Crude Oil prices drift lower for the third successive day and refresh a one-month low on Friday.
• Worries that rising interest rates will hamper economic growth and dent fuel demand exert pressure.
• Expectations that the Oil market will remain tight over the short term do little to lend any support.

West Texas Intermediary (WTI) Crude Oil prices edge lower for the third successive day on Friday – also marking the sixth day of a negative move in the previous seven and hit a fresh one-month low during the early European session. The commodity currently trades just above the $81.00/barrel mark, down over 0.50% for the day, and seems vulnerable to prolonging its recent sharp retracement slide from a 13-month peak touched last Thursday.

Investors remain concerned that economic headwinds stemming from higher interest rates in the United States (US) will dent fuel demand. This has been a key factor behind the recent brutal selloff in Crude Oil prices, which has declined nearly $13, or over 13.5% from the vicinity of the $94.00/barrel mark touched last week. Meanwhile, the negative factor, to a larger extent, overshadows worries about tightening global crude supply and supports prospects for a further depreciating move.

Traders, however, seem reluctant to place aggressive bets and might prefer to wait on the sidelines ahead of the release of the crucial US monthly employment details, due later during the early North American session. The popularly known NFP report will influence the Federal Reserve’s (Fed) next policy move, which, in turn, will drive the US Dollar (USD) demand. This, in turn, should provide some meaningful impetus to the US Dollar-denominated commodities, including Crude Oil prices.

Nevertheless, the black liquid remains on track to register heavy weekly losses of over 9% – its sharpest decline since March – and seems poised to depreciate further in the wake of the worsening global economic outlook, particularly in China – the world’s largest Oil importer.

Technical levels to watch

WTI US OIL