With the USD strengthening as a result of increased US yields and worries about the Chinese real estate market, the price of the West Texas Intermediate (WTI) barrel fell to $81.30.

The shares of China’s Country Garden Holdings fell 20% after the company revealed an anticipated loss of $7.6 billion for the first quarter of 2023 and stopped selling 11 onshore bonds. Moody’s issued a warning about a possible crisis spillover into the real estate and banking sectors, which could postpone the sector’s recovery.

China is the world’s largest oil consumer, and the price of WTI is affected by the slumping real estate market. In response to increasing US yields, the USD increased above 103.00. Bond markets are indicating investors’ faith in the Federal Reserve’s decision to hold off on raising interest rates in September, but the likelihood of a 25 basis point hike in November has increased to about 40%.

With signs of bullish exhaustion, technical analysis predicts that the outlook for WTI will change from neutral to bearish.
Support levels are $81.00, and $79.50, while resistance levels are $84.00, and $85.00.

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