- Oil suffers from US-China trade tensions, oil demand outlook and USD bounce.
- The downside looks compelling ahead of US EIA Crude Stocks data.
WTI (futures on Nymex) witnessed a fresh leg lower last hour, following the overnight consolidation phase around 53.65 region, as the bears now look to test the two-month lows of 53.20 amid lingering US-China trade war fears.
Bears gear up for a break below $ 53 mark
The oil-price recovery from two-month lows, fuelled by bullish American Petroleum Institute’s (API) report, fails to find acceptance above the 53.75 barrier, as markets remain wary over the oil demand outlook, in the face of the US-China trade escalation that is leading into a currency war now.
Moreover, the black gold also remains undermined by the Yuan depreciation, which continues to have a negative impact on the demand for the risk/ higher-yielding assets such as oil. Meanwhile, a broad-based US dollar comeback also seems to collaborate to the downbeat tone around the USD-sensitive barrel of WTI.
All eyes now remain on the US Energy Information Administration (EIA) weekly Crude Stockpiles data due later today at 1430 GMT for fresh directives.
WTI Levels to watch
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