Oil was down on Monday morning in Asia, the European Union (EU)’s impending ban on Russian crude imports is driving global supply fears. Brent oil futures dropped 2.18% to $109.12 and WTI futures fell 2.04% to $106.41. Both Brent and WTI benchmarks, which jumped about 4% during the previous Friday, increased by more than $1 a barrel earlier in the session, with WTI reaching its highest level since March 28 at $111.71. Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC) and allies (OPEC+), have been unable to meet previously agreed targets for output increases. This is due to under-investment in oilfields in some OPEC members and the more recent losses in Russian output. According to the cartel’s latest monthly report, OPEC’s output rose by 153,000 barrels per day (bpd) to 28.65 million bpd. This lags behind the 254,000 bpd rise that OPEC allowed under the OPEC+ deal.

Short Term Technical View: In 1-hour chart, XTIUSD is trading below middle line of Bollinger band indicator. CCI indicator also showing weakness at bottom line level, and XTIUSD is trading today near pivot level 107. As per the 1-hour chart, XTI will be test next support level 105.45. As per my view, XTIUSD sell range is 107.50 to 107.75 and there is very strong resistance zone at 109.50.

Alternative Scenario: If XTIUSD will trade above 107 and sustain in U.S. Session so it will be, give great opportunity to buy with the target of 108.90 with the stop loss of 106.
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