- Lack of fresh clues, doubts over the US-China trade deal and the Chinese GDP triggered WTI pullback.
- The US Dollar (USD) remains under pressure, helps the commodity basket to recover.
- Weekly API data, US-Iran tussle remain in the spotlight.
With the market sentiment turning cautious ahead of the key data/events, the US Dollar (USD) lost its latest recovery, which in turn helps WTI to bounce off from the 100-DMA while trading near $59.50 heading into Europe open on Tuesday.
The energy benchmark declined on Monday after China’s growth numbers slumped to multi-year lows. Adding to the downside could be the usual performance of the oil refiners around the Gulf of Mexico despite the Story Barry.
However, Iranian demands from the US to first remove harsh sanction and return to the 2015 Nuclear Deal in order to discuss future ties highlights the geopolitical uncertainty surrounding the black gold’s output and limited further downpour.
Markets remain worried ahead of the key US Retail Sales, UK employment and EU Trade Balance numbers that will show the strength of the world’s leading economies. Though, major attention will be given to the global central bankers’ comments at the French G7 Presidency 2019 appearances. Market players will be keen on receiving the signs of further monetary easing from the central bank leaders to further extend their USD short sessions.
The US oil inventory data from the American Petroleum Institute (API) for the week ended on July 12 can also entertain energy traders. The industry reading earlier slumped by -8.129 million barrels.
Additionally, news concerning the trade developments between the US and China will also have its market impact that shouldn’t be missed.
Technical Analysis
Sellers will look for the break of 100-day moving average (100-DMA) level of $59.00 in order to aim for June 28 low near $57.80/70 whereas the current month bottom around $56.00 can flash on their radars afterward. On the upside, buyers will wait for the successful break of $61.00 ahead of looking for May month high near $63.80.
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