- Fresh US-China trade worries, global growth concerns keep the prices undermined.
- Risk-on, OPEC supply cut extension, US stockpiles draw offer some reprieve to the bulls.
- Attention turns towards the US ISM services and EIA weekly crude stocks data for fresh moves.
WTI (futures on Nymex) is seen consolidating Tuesday’s 3% sell-off around the midpoint of the 56 handle, having failed a few recovery attempts to regain the 57 handle.
The choppy trend seen in the black gold so far this Wednesday is mainly due mixed market sentiment, with re-ignition of the US-China trade worries and growth concerns dampening investors’ mood on one hand while the recent OPEC+ output cuts extension and falling US crude inventories offering some respite to the oil bulls.
The American Petroleum Institute (API) showed on Tuesday, the US crude inventories fell by 5 million barrels last week, more than the expected decrease of 3 million barrels.
Meanwhile, markets also digest the downward revision to the long-tern Brent oil price forecast by Morgan Stanley, as the immediate focus now shifts towards the US Energy Information Administration (EIA) crude stockpiles data due later today at 1430 GMT for fresh trading impetus.
Levels to watch
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