Crude oil rebounded higher following an eight-month low

In Monday’s early Asian session, crude oil slightly rebounded following an eight-month low last week, weighed down by a soaring greenback and investors’ worries over a globally rising interest rate that would spark a recession and hit energy demand.

The US dollar index is currently trading higher to a fresh 20-year high by 0.49% to 113.75 points, capping crude price gains.

The international oil benchmark Brent contracts advanced by 0.20% to $86.32 per barrel, and the West Texas Intermediate futures increased by 0.30% to $78.95 a barrel. Both slumped by approximately 5.00% last Friday.

Analysts anticipate crude prices to find support as Russia reinforces its troops for its war in Ukraine. Also, European Sanctions on Russian oil are set to take effect in the last month of this year.

As the prices are expected to face another downward trend, the market’s attention is turning to the Organization of the Petroleum Exporting Countries and allies (OPEC+) meeting on October 05. Recently, the cartel agreed to slash its output.

However, since the organization is producing well below its targeted output, any announced decrease is unlikely to have much, if any, impact on the actual global supply.

Technical Analysis

On the technical side, the prices of both contracts are very volatile as they lose and decrease, not staying at one particular position.

During the day, the West Texas Intermediate futures traverse the support level of $78.31 and the resistance level of $79.97, respectively.

Consequently, the Brent contracts are trading within an intraday low of $84.50 and an intraday high of $85.37, respectively.

Despite a slight rebound in the earlier session, analysts are still sour on both contracts and suggested a strong sell move due to bearish signals from the hourly chart’s technical indicators and moving averages.

For instance, both assets’ Relative Strength Index (RSI) failed to break the 30.00 level and is now sitting at 28.43 for WTI and 25.11 for Brent.