- WTI looks for fresh clues to extend the latest pullback from eight week high.
- Risk-tone declines amid trade pessimism, Hong Kong protests.
- API data, trade/political headlines can offer near-term directions.
Following its declines from a multi-week high, WTI seesaws near $57.00 during Tuesday’s Asian session.
The energy benchmark cheered the weekend headlines concerning the increased odds of the US-China phase one deal during early yesterday. Adding to the initial upside could be internal protests in Iran and the US-Iran tension. However, doubts were spread after the CNBC quoted Chinese policymakers as being less optimistic about the deal with the United States (US).
Recently, Chinese President XI Jinping’s spokesman reiterated the nation’s “One Country, Two Systems” motto concerning Hong Kong protests. While it indicates the dragon nation’s hard stand against the present protests, the same negatively affects the US-China relations as diplomats from the US, including Secretary of State Mike Pompeo, keep pushing China towards making promises on Hong Kong’s liberty off-late.
While portraying the market sentiment, the US 10-year treasury yields and the S&P 500 Futures stay mostly in negative territory, though with mild losses, by the time of writing.
Moving on, investors will keep an eye over the industry survey of the crude oil inventories for the week ended on November 15, to published by the American Petroleum Institute (API). The API report previously registered -0.5M mark. Also important to the traders will be updates on the US-China trade relations and/or headlines surrounding the US and the Middle East.
Technical Analysis
Unless providing a daily closing beyond an ascending resistance line stretched since September 25, at $58.15, prices are less likely to aim for September 19 high near $59.45 and $60.00. As a result, sellers can target a five-week-old rising support line, at $55.60, during fresh declines.
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