Oil prices decline and signs of economic damage appear

Oil on the fundamental side

Oil prices fell on Tuesday for the second day in a row to below $90 a barrel, following President Trump's statements that the war in Iran would end soon, with Brent crude reaching $88 and West Texas Intermediate falling to around $83 a barrel before rising again.

Forecasts indicate that Trump's statements will not have a major impact, especially after Iran's response that there will be no end to the war now and that they will be the ones to declare the end of the war according to their vision and interests.

Despite the decline in oil prices so far this week, emerging indicators suggest that the supply shock is beginning to negatively affect economic activity in many Asian countries.

Oil on the technical side

Crude oil prices fell today, especially West Texas Intermediate crude, to around $83 per barrel, and are now attempting to rebound, especially as they are trading near uptrend levels on the four-hour chart.

This could push crude oil up at the moment, even if it is only an upward correction after yesterday's declines and the start of the Asian session today.

Our next targets are near $90 and then $105 per barrel. This scenario will fail if prices break below $79.50.