Search ForexCrunch
  • Trump’s pushes OPEC to raise output, dismal US Q1 GDP details weigh on oil.
  • Looks vulnerable below 62 level, as focus shifts to US weekly supply reports.

WTI (futures on Comex) broke its Asian consolidative mode around the 63 handle to the downside in the European session and hit fresh daily lows at 62.47 levels before recovering some ground to now trade near 62.80 region.

The ongoing weakness in the black gold was mainly fuelled by Friday’s comments from the US President Trump that knocked-off both crude benchmarks 3%. Analyst at Australia and New Zealand (ANZ) banking group noted: oil prices “took a hit after President Trump indicated he had spoken with Saudi Arabia about reducing the impact of lower Iranian oil exports by increasing flows elsewhere.”

Adding to the downside bias in the barrel of WTI, the US Q1 GDP data revealed some murky details with regard to higher inventories, trade, etc. that re-enforced concerns over the US economic health and eventually its impact on oil demand. Meanwhile, rising US output and inventory levels also continue to remain a drag on the prices.

Looking ahead, the US oil could find some reprieve from the recent broad-based US dollar weakness, as traders await the US weekly crude stockpiles data from the American Petroleum Institute (API) and the Energy Information Administration (EIA) due later this week for fresh direction.

WTI Technical Levels