- Oil prices were down heavily last week and extended the slide on Monday.
- Eyes on OPEC this month.
- Weekly stochastics remain bearish.
The price of West Texas Intermediate, (WTI), oil remains on the back foot, down -1.07% on the day so far, trading between a range of $52.16bbls. and $54.60bbls at $52.74bbl at the time of writing. Oil prices were down heavily last week, with WTI losing around 8.8% last week and plunged, doubling the losses for the month to around 17% for May. There has been a flight to safety which has weighed on global stocks of which oil tends to track and considering the growing fears over global trade and economic growth, demand for oil is expected to tail off sharply.
Meanwhile, the market will look ahead to the OPEC meeting, scheduled for around June 25th-26th. Leading up tot he meeting, the Saudi Energy Minister Khalid al-Falih has called recent volatility “unwarranted” and has said he expects OPEC to help to stabilize prices beyond the end global output pact that ends at the start of July. “We have previously stated our commitment to do whatever it takes to stabilize markets and we have delivered on those promises. And I am making that commitment again,” he said, according to reports.
WTI levels
Technically, the price has penetrated the 200 W EMA target at 52.40 and eyes witch to the 38.20% Fibo at 51.64 which has a confluence with 11th Feb major swing lows as an additional downside key target at 51.26. However, this is a technically congested area on the historical chart and a pullback might be expected at this juncture where the price has bottomed and the daily time frame is making for a doji at trend-line support. The 55.90 comes as a 50% mean reversion of 30th May’s sell-off. However, weekly stochastics remain bearish and the price is now well into a reversal of the Dec. commencing rising channel that ended on 22nd May.
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