WTI: Downside opening up towards $ 55.50 ahead of API data

• Lower Chinese GDP target, risk-off, USD demand offset OPEC output cuts, Russia’s Novak comments.
• Bulls await the API crude stockpiles data for some respite, as bears eye 55.50.

WTI (oil futures on NYMEX) broke its Asian consolidative range to the downside in Europe and hit fresh session lows at 56.09 as the European traders reacted negatively to the Chinese downgrade to its economic growth target and sold-off the risk assets, including equities and oil.

At its parliamentary event earlier today, China said it was targeting economic growth of 6.0 to 6.5% in 2019, down from the 6.6% growth reported last year, Reuters cited.

Moreover, the broad-based US dollar strength amid risk-off also collaborated to the selling pressure seen in the black gold.

However, the bulls remain hopeful that the API crude stockpiles data could rescue them and trigger a rebound in the rates back towards the 57 handle, as OPEC output cuts and Russia’s Oil Minister Novak’s latest comments continue to cushion the downside.

Novak told TASS reporters that Russia can reach an average daily decline in  oil  output under the OPEC + agreement by 228,000 barrels by the end of March.

All eyes now remain on the US API weekly crude stockpiles data due to be published later today at 2130 GMT for fresh trading impetus.

WTI Technical Levels