Citigroup Warns of El Niño: $5 Trillion Loss to Global Economy in 5 Years

The news includes Citigroup's warning of global economic damage caused by El Niño, which could reduce risk appetite in equity markets. Although the RSI at 36.28 is near oversold territory, the MACD remains below the signal line and in negative territory, indicating short-term weakness. The price is trading below the 20- and 50-day moving averages, with a 2.6% decline in the last 24 hours. Given the negative impact of the news and the weak technical outlook, the downtrend may continue in the short term. However, the RSI approaching oversold levels could limit the pace of the decline.

Brent crude oil fell 3.3% in the last session to $72.60, trading below both its 20-day ($73.20) and 50-day ($73.55) moving averages. The RSI is in weak territory at 42, while the MACD remains negative below the signal line. Citigroup's El Niño warning could heighten concerns over global economic growth, reinforcing negative expectations for oil demand. In the short term, weak technical indicators and macroeconomic risk perception suggest that downward pressure on Brent may persist.

WTI crude oil fell 3.1% in the last close to $69.23, trading below its 20- and 50-day moving averages. The RSI is in weak territory at 41.5, while the MACD remains below the signal line and negative. Citigroup's El Niño warning could heighten concerns over global economic growth, negatively impacting oil demand expectations. In the short term, weakness in technical indicators and macroeconomic worries stemming from the news may exert downward pressure on prices. However, confidence is moderate due to the pace of the decline and the possibility of a rebound at current levels.