- Global growth concerns, rising stockpiles negative the impact of risk-recovery.
- Focus on the US durable goods data, Wall Street for the next moves.
WTI (oil futures on NYMEX) failed to benefit from the turnaround in the risk-sentiment amid a recovery in the European equities, as the bears continue to guard the 67 barrier.
The latest uptick in the barrel of WTI fizzled, as looming global growth concerns combined with a fifth consecutive rise in the US crude inventories continue to dent the investors’ sentiment.
However, the downside remains capped amid broad-based US dollar weakness and latest comments by the Saudi Arabian Oil Minister Al-Falih. Al-Falih said that there could be a need for intervention to reduce oil stockpiles after increases in recent months.
Markets now await the US durable goods data for further impetus on the USD-sensitive oil while the sentiment on the Wall Street will offer fresh direction to the prices.
WTI Technical Levels
According to Slobodan Drvenica at Windsor Brokers, “Bears may stay on hold for extended consolidation as traders book some profits from Tuesday’s strong fall. Consolidative phase should stay capped by 200SMA to keep strong bearish bias on negative techs/fundamentals. Stronger recovery could be anticipated on sustained break above 200SMA, which would expose broken Fibo 61.8% of $64.43/$76.88/falling 10SMA ($ 69.19/23) and $70 pivot (psychological barrier / Fibo 38.2% of $76.88/$65.73 fall). Res: 66.96; 67.70; 68.48; 69.23. Sup: 65.98; 65.73; 64.84; 64.43.”
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