- Global recession fears feed into the oil demand concerns, rendering Oil negative.
- Saudi OilMin comments on potential OPEC cuts extension to cap the downside?
- All eyes on trade-related headlines and US API crude stockpiles data.
WTI (futures on Comex) extended its losing-streak into a sixth day today and hit fresh daily lows at 52.44 before recovering some ground amid a wave of risk recovery seen across the European markets.
The black gold remains pressured by mounting oil demand concerns on the back of increased risks of a global recession, as escalating US-China trade war continue to weigh on the global growth prospects. The latest disappointing macro releases from the UK and Euroland accentuate the global economic slowdown fears.
However, the barrel of WTI continues to draw some temporary support from the recent comments by the Saudi Arabian Energy Minister Al-Falih, as long as it hold the 52.00 support. Al-Falih said on Monday that a consensus was emerging among producers to continue working “to sustain market stability” in the second-half of the year. Meanwhile a drop in the Russian oil output so far this month also helps to keep the downside cushioned.
The immediate focus now remains on the weekly crude stockpiles data due to be published by the American Petroleum Institute (API) at 2130 GMT for fresh direction on the prices.
WTI Technical Levels
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