- Oil sellers return as Saudi oil production capacity fully restored.
- Risk-off, bearish EIA crude inventory data adds to the selling bias.
The bears continue to guard the upside near 52.85 region, as the recovery attempts get sold off into fragile risk sentiment and global growth concerns.
Further, the latest comments by the Saudi Arabian Energy Minister Prince Abdulaziz triggered the fresh leg lower in the black gold. He said that the Kingdom’s oil production capacity has been fully restored after attacks on its facilities last month.
Meanwhile, oil demand growth outlook amid global economic slowdown combined with swelling US inventories also collaborate to the bearish tone around the prices. The US crude inventories rose 3.1 million barrels last week, much more than the expectations for an increase of 1.6 million barrels, Wednesday’s data published by the US Energy Information Administration (EIA) showed.
Looking ahead, the bias remains skewed towards the downside in the barrel of WTI and expected the rallies to be short-lived, as the bears gear up for a break below the key 52.00 support.
WTI Levels to watch
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