- Prices of WTI bounce off Monday’s lows near $52.00.
- WTI lingers over the 200-week SMA above $52.00.
- API, EIA reports coming up later in the week.
After dropping to fresh 4-month lows in the boundaries of the $52.00 mark per barrel on Monday, prices of the barrel of WTI have managed to regain some composure today and advance to the $53.00 zone.
WTI looks to trade, data
Following four consecutive sessions of negative price action, prices of the barrel of the American benchmark for the sweet light crude oil have managed to attract some buying interest after falling as low as the $52.00 neighbourhood at the beginning of the week.
In the meantime, crude oil prices have been facing increasing downside pressure since late May. The selling mood in the commodity has particularly exacerbated in past days after President Trump threatened to impose tariffs on all of the US imports of Mexican products, adding to the already escalating concerns over the world growth and denting further the prospects of global demand for crude oil.
Furthermore, crude oil prices risk entering into a bearish market, as they’re already losing around 20% since YTD peaks beyond the $66.00 mark per barrel recorded in late April.
Later in the week, attention as usual will shift to the reports on crude oil supplies by the API and the EIA on Tuesday and Wednesday, respectively.
What to look for around WTI
Prices of the barrel of the West Texas Intermediate remain well into the defensive territory so far this week. Increasing trade concerns have been weighing on traders’ sentiment, offsetting positive factors such as the OPEC+ deal to curb production, the tighter market and geopolitical effervescence. The focus of attention remains on the US-China-Mexico trade front as well as speculations on a potential extension of the ongoing OPEC+ agreement, which is likely to be decided at the cartel’s meeting later in the month.
WTI significant levels
At the moment the barrel of WTI is gaining 0.26% at $52.92 and a break above $54.33 (50% Fibo of the December-April rally) would aim for $58.45 (100-day SMA) and finally $59.82 (200-day SMA). On the other hand, the next support aligns at $52.04 (monthly low Jun.3) seconded by $51.46 (61.8% Fibo of the December-April rally) and finally $51.15 (monthly low Feb.11).
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