There isn't a clear catalyst for the decline in oil prices today but the decline is gathering momentum. WTI crude oil is now down $7 to $97.33.

Last week's closing low was $98.20 and the intraday low was $95.12. The bounce from that was halted right at the 61.8% retracement level and now it's back down to the lows.

oil technical analysis

The main driver of weakness is economic angst. There's ongoing demand destruction in emerging markets and the market is concerned about a potential gas shutoff in Europe. That could lead to some gas-to-oil switching for power demand but a recession may still curb overall use.

In Asia, worry about more lockdowns in China is also impact the demand side.

In oil-specific news, OPEC today forecast demand would rise by 2.7 million barrels in 2023 while leaving this year's growth forecast unchanged at 3.36 mbpd. That's based on "expected improvements in the containment of COVID-19 in China."

Biden's visit to Saudi Arabia is another angle to watch. The US announced it could resume sales of offensive weapons to Saudi Arabia and that may be part of a larger deal to pump more oil.