Oil down 1% amidst commodities sell-off, WTI trading near 63.50

Crude oil has fallen 1% from its recent highs, with commodities and risk assets falling as traders seek safe havens amidst the equities shakeout; WTI and Brent Crude are trading at 63.45 and 66.90 respectively, just ahead of the European market session.

Oil, along with other major commodities, is feeling the sting of the recent equities collapse, with risk aversion quickly becoming the flavour of the week. Oil has benefited from a weakening US Dollar lately, but that influence has ended as equity markets around the world retreat in the face of inflation stoking risk aversion as markets prepare to price in rising interest rates from central bankers.

Oil Technicals

Crude is quickly giving up ground, trading into January lows as Asia markets tumble; WTI can expect to face support at the 63.00 major handle, while a bullish retracement will run into resistance close by at 63.75.; Brent Crude faces support at 66.30 and resistance beginning to disappear over the horizon at 66.90