- Risk-off grips Europe amid global recession fears as trade concerns weigh.
- Looks to test 2-month lows near 57.35 ahead of API crude stocks data.
WTI (futures on Comex) resumed its recent bearish momentum and hit fresh three-day lows at 57.66 in the European session, as the appetite for the higher-yielding assets was killed amid resurfacing global recession fears, induced by escalating US-China trade war.
The risk assets such the US oil lost as much as 2.5%, S&P 500 futures fell 0.70% while the US benchmark 10-year Treasury yields refreshed 20-month lows at 2.226%, down 1.80%.
Amidst risk-off at full steam, the US dollar is seen gaining ground across the board on increased flight to safety, collaborating to the weakness in the black gold. In times of panic and market unrest, investors prefer to stay invested in the US dollar and Treasuries in order to protect their capital.
Despite the sell-off, markets remain hopeful that the looming supply threats, in the wake of the OPEC cuts and the US sanctions on Iran and Venezuela, will help cushion the fall as the barrel of WTI attempts a tepid bounce in a bid to regain the 58 handle.
Looking ahead, the US weekly crude stockpiles data could offer fresh insights on the US supply-side scenario and help rescue the oil bulls. The data will be released later today at 2130 GMT.
WTI Technical Levels
Share
