- Oil bears cheer trade woes-led oil demand growth concerns.
- Focus on geopolitical and trade updates ahead of US weekly supplies data.
WTI (futures on Nymex) resumed its last week’s decline and hit fresh session lows just ahead of the 55 handle, as the bears regained poise amid rising concerns over the demand for the fuel, as the global economic growth continues to weaken, in the face of US-China trade war.
WTI: Will it close the Saudi attack-led bullish opening gap?
The barrel of WTI extended losses in the European trading amid mixed market sentiment, as traders digest the latest development around the US-China trade scenario and refrain from placing big bets on the higher-yielding oil, in absence of growing trade uncertainty. Trump officials weighing limits on US investors portfolio flows into China – Bloomberg
Meanwhile, improving Chinese manufacturing sector failed to lift the China slowdown fears and continued to weigh on the oil demand outlook for the world’s no.2 oil consumer, China. Last Friday, The International Energy Agency (IEA) Chief BIrol said that the agency was looking to cut the 2019 global oil demand growth forecast if the global economy weakens further.
Looking ahead, the broader market sentiment will continue to play a key role in the oil-price action, against the backdrop of the US-China trade uncertainty. Markets also eagerly await the US weekly Crude Stocks data for a fresh trading impetus, as they ignored the latest warning by the Saudi Crown Prince on Iran.
WTI Levels to watch
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