WTI plunges to fresh 7-week low below $66

• USD strength and EM meltdown concerns weigh on commodities.
• Global growth outlook and demand worries drag crude oil lower.

Crude oil met another selling wave in the NA session and the barrel of West Texas Intermediate fell to its lowest level since June 22 at $65.77. As of writing, the barrel of WTI was trading at $65.85, losing $2, or nearly 3%, on the day.

The flight-to-safety that has been dominating the markets since the second half of the previous week continues to weigh on commodity prices in the new week. In addition to the ongoing trade conflict between China and the United States, the Turkish lira's collapse and the concerns over its spillover effects push investors to safer assets. In line with these expectations, OPEC in its monthly report that it revised its 2019 oil demand growth estimate to 1.4 million bpd, 20K bpd lower than the previous estimate.

On the other hand, last Friday's data published by Baker Hughes Energy Services showed that drillers in the U.S. added ten more oil rigs last week to point out to higher production in the U.S. With 869, the number of total active oil rigs in the U.S. is at its highest level in more than three years.

Technical levels to consider

The initial support aligns at $65.70 (Jun. 22 low) ahead of $65 (psychological level) and $64.25 (Jun. 15 low). On the upside, resistances could be seen at $67.90 (daily high), 68.90 (50-DMA) and $70 (psychological level).