WTI anticipates further losses below $88, as recession concerns increase and the US ISM PMI is anticipated

Futures for West Texas Intermediate (WTI) on the New York Mercantile Exchange (NYMEX) are on the verge of breaking to the negative from a thin consolidation between $88.54 and 89.32 during the Tokyo session. The asset has abandoned the psychological support of $90.00 as western central banks prepare for a new cycle of rate hikes to combat inflation mayhem.

On worldwide markets, price pressures are intensifying. The favored inflation gauge of the European Central Bank (ECB), the Harmonized Index of Consumer Prices (HICP), has surpassed 9% due to surging energy costs.

The US economy's inflation rate has shown signs of weariness but continues to hover above 8.5%, which is far above the target rate of 2%. And inflationary pressures wreak the most havoc on the British economy. According to a Citi study, long-term inflation forecasts have skyrocketed to 4.8%, much over the Bank of England's (BOE) target of 2%.

Moreover, the dismal Caixin Manufacturing PMI data has contributed to the decline in oil prices. The economic data has been revised down to 49.5, below the consensus estimate of 50.2 and the previous report of 50.4. Notably, China is the greatest importer of oil, and a drop in oil consumption by the largest importer is sufficient to pull the price of black gold down.

In addition, the price of black gold has failed to profit on the recent reduction in oil inventories published by the Energy Information Administration (EIA). The oil inventories have decreased by 3,326 million barrels, as opposed to the previously stated decrease of 3,282 million barrels.

The US ISM Manufacturing PMI has substantial weight in today's session. The consensus forecast for economic statistics is 52, compared to the previous reading of 52.8. A recurrence of the same will increase the pressure on oil prices as recession fears intensify.