- WTI registers the second day of loses pulls back from the multi-month top.
- Energy traders rethink their expectations of the US-Iran war, fresh trade-negative news from China adds burden to prices.
- Weekly API data, trade/political headlines are in the spotlight.
WTI keeps it negative for the second consecutive day while declining to $62.50 during the pre-European session on Tuesday. The energy benchmark seems to have been bearing the burden of traders’ risk reassessment and profit-booking while the latest news concerning the US-China trade relation also weighs on the black gold.
Energy traders seemed to have been disappointed by high expectations of the US-Iran war after nothing major happened on Monday. On the contrary, the global traders’ push for peace, amid the dominant position of the US, raised the hope of de-escalation of any threats from the Middle East.
Additionally, trade headlines have started to regain their piece of attention. The latest one comes from China’s Vice Minister of Agriculture and Rural Affairs, Han Jun. The diplomat said that China will not change its agricultural import quotas to accommodate any increased purchases from the US.
With this, markets seem to have shrugged off the news that the US is preparing sanctions for Iraq and barred Iranian Foreign Minister Javed Zarif from the United Nations (UN) speech.
Looking forward, trade/political headlines will keep the drivers’ seat but the weekly release of crude oil stock from the American Petroleum Institute (API), prior -7.8M, could also gain market’s attention.
Technical Analysis
Sellers will look for entry below five-week-old rising support line, at $61.40 now.
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