- WTI has charted the longest daily losing streak in four weeks.
- China’s slowdown and Fed’s hawkish cut are likely weighing over prices.
WTI oil fell for the fourth consecutive day on Thursday, confirming its longest daily losing streak since Oct. 2.
Back then, the benchmark had dropped for eight straight days.
Currently, a barrel of WTI is changing hands at $54.20 representing little change on the day. Prices hit a low of $53.73 in the overnight trade.
The black gold came under pressure on Thursday as official data from China showed factory activity shrank for a sixth straight month in October and growth in the service sector fell to lowest since February 2016.
Further, the trade talks between the US and China faced new complications when the summit at which they were supposed to meet was canceled because of violent protests in the host nation Chile. That likely added to bearish pressures around crude.
The US Federal Reserve did cut rates by 25 basis points on Wednesday, as expected. That, however, failed to put a bid under oil, possibly because markets took it as hawkish cut – the central bank acknowledged the labor market strength and the pick up in the household spending, suggesting the rates could be on hold for the remainder of the year.
Looking forward, WTI will likely find bids if the Caixin China Manufacturing PMI, due at 01:45 GMT, betters expectations by a big margin.
Technical levels
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