- Risk-on action in the global equities, hopes of OPEC cuts extension offer support.
- Technical set up points to negative bias, as oil prices hold below 200-DMA.
- Focus on US API supply report and trade developments for fresh impetus.
WTI (futures on Nymex) faced strong resistance at the 54 mark and pullback sharply to the midpoint of the 53 handle in the European session. But the bulls managed to find some support near the last amid the risk-on action in the European equities.
Markets continue to cheer the optimism induced by the US-Mexico tariff aversion and solid UK jobs report, keeping the sentiment buoyed around the higher-yielding oil. Further, the expectations that the OPEC + will manage to extend the oil output cuts beyond June also collaborate to the upbeat tone.
However. the further upside appears to lack momentum amid rising demand oil demand concerns from world’s second largest oil consumer, China, after that the country’s crude oil imports slipped to around 40.23 million tonnes in May. More so, mounting global growth concern amid US-China trade escalation also continue to remain a drag on the prices.
Further, the technical set up also remains in favor of the bears, as long as the black gold holds below the 200 – SMA on the daily sticks. Therefore, the focus now remains on the US API weekly crude stockpiles report due to be published later today at 2130 GMT for the next direction on the prices.
WTI Technical Levels
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