- WTI fails to hold onto recovery gains amid fresh risk-off.
- Fears of ‘two viruses’ in the US overtakes President Trump’s threats to Iran.
- Global policymakers stay ready to act but nothing concrete is on the table.
WTI bears return to the desks during the early Thursday, June futures down 4.90% on a day to $13.63, after flashing the first daily positive closing in nine the previous day.
In doing so, the black gold ignores the recent threats to Iran from US President Donald Trump while taking downbeat clues from the Trump administration’s coronavirus taskforce briefing.
During Wednesday’s virus briefings, the US centers for disease control and prevention (CDC) Director Robert Redfield cited fears of the coexistence of flu and the coronavirus (COVID-19).
Following that US President Trump warned Iran to shoot their ‘gunboats’ if they get too close ‘out of the water.’ The reason could be the recent fears that Iran is preparing to attack the US out of its old enmity with the world’s largest economy.
Elsewhere, the US, Canada, OPEC+ and Russia are all of the same opinions about the need for actions to stop the bloodbath in the oil prices. However, no concrete measures have been rolled out so far.
Amid all these, the US 10-year Treasury yields remain under pressure around 0.61% whereas stocks in Japan trim early-day gains while the US S&P 500 Futures remain mildly in the red.
Technical analysis
Unless breaking a 21-day SMA level of $20.30, buyers are less likely to take entries, which in turn keep $10.00 on the cards. Additionally, the monthly high above $29.00 and Tuesday’s low near $7.00 are likely extra numbers to watch during either side moves.
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