WTI Remains on the Defensive Near $76, as Central Banks Rekindle Recession Fears and PMIs Are Monitored

Following a reversal from the weekly high to welcome the bears, WTI crude oil licks its wounds near $76.20 on Friday morning. Fearing a recession, the traders of black gold are awaiting the first readings of important economic activity figures from leading economies.

In spite of this, the energy benchmark fell the most in over a week as global central banks announced rate increases the day before. The oil market's pessimism was exacerbated by the policymakers' willingness to maintain high interest rates for an extended period of time, as well as inflationary concerns. Consequently, economic slowdown worries bolstered the US Dollar's safe-haven demand and weighed on the Oil.

Moreover, owing to Beijing's prominence as one of the world's largest consumers of commodities, weak China statistics provided additional support to sellers of black gold. China's Retail Sales dropped to -5.9% in November, compared to -3.6% predicted and -0.5% previously, while Industrial Production came in at 2.2%, compared to 3.3% market predictions and 5.0% earlier readings.

In addition, news from Canada weighed on oil prices, as reported by Reuters: "Canada's TC Energy Corporation said it was resuming operations in a stretch of its Keystone pipeline, a week after a spill of more than 14,000 barrels of oil in Kansas caused a shutdown."

As a result, oil bears are well-positioned to reclaim control, but await the early readings of the PMIs for the UK, Europe, and the US for the month of December for unambiguous guidance.