WTI dumped to $48.15 amid broad sell-off, cheapest since Sept 2017

• Sold-off into broad market sell-off and mounting oversupply worries.
• Will it breach 48.00 support ahead of API crude stocks data?

WTI (oil futures on NYMEX) fell for the third straight day on Tuesday and hit the lowest levels since September 2017 at 48.15, tracking the heavy sell-off in the risk assets such as the global equity markets and Treasury yields.

The black gold tanked nearly 4% as mounting global economic growth worries continue to bite into the demand outlook for oil, as we progress towards the New Year. Moreover, expectations of a dovish Fed rate hike combined with the European political uncertainties continue to weigh negatively on the overall market sentiment, thereby denting the risk appetite.

Further, swelling US crude inventories as well as record high US and Russian oil output levels add to the looming oversupply concerns and exacerbate the pain in the barrel of WTI. Russian oil output has hit a record 11.42 million bpd this month while oil production from seven major US shale basins is by the year-end expected to climb to more than 8 million bpd for the first time, Reuters reports.

Over the last hour, the prices have halted its slide, having derived some support from broad-based US dollar weakness. Looking ahead, the main focus now remains on the US weekly API crude stockpiles due later in the NA session at 2130 GMT.

WTI Technical Levels