- Prices of WTI plummet to multi-week lows near $57.00.
- US-China trade jitters keep weighing on sentiment.
- API weekly report coming in later today.
Prices of the WTI have resumed the downside today and recorded fresh 2-month lows in the boundaries of the $57.00 mark per barrel.
WTI looks to trade, API
The commodity-complex as well as the risk-associated universe remains under heavy downside pressure today in response to a pick up in concerns over the protracted US-China trade dispute, which is expected to impact on the global demand for the black gold as well as the outlook on world growth.
Heightened trade concerns have so war managed to eclipse supply-side positives coming from the geopolitical front, where latest news cited J.Bolton – Trump’s security adviser – claiming that Iran was behind the recent sabotage to Saudi oil tankers in the Persian Gulf.
In the same line, Russia hinted at the likeliness that she could support an extension of the ongoing agreement to curb oil production.
Later in the NA session, the API will publish its weekly report on US crude oil supplies ahead of tomorrow’s official report by the DoE.
What to look for around WTI
Prices of the WTI are reversing the recent squeeze higher, re-shifting the focus back to the $57.00 mark per barrel, where emerges an important Fibo retracement. In the meantime, persistent and increasing US-China trade jitters have regained the upper hand when comes to determine the direction in the global markets. Looking at the broader picture, the ongoing OPEC+ agreement to curb oil production, geopolitical tensions involving the US, Iran, Saudi Arabia, Venezuela and Libya and the above mentioned tight supply conditions are all supportive of higher oil prices in the near to medium term.
WTI significant levels
At the moment the barrel of WTI is losing 2.94% at $57.24 and faces the next support at $57.03 (low May 29) seconded by $54.33 (50% Fibo of the December-April rally ) and finally $52.30 (200-week SMA). On the flip side, a break above $60.09 (200-day SMA) would aim for $61.67 (55-day SMA) and finally $63.79 (high May 20).
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