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  • Meets fresh supply amid renewed US-China trade worries, US sanctions.
  • Solid Chinese oil demand to cap the downside ahead of EIA data?

WTI (futures on Comex) stalled its recovery just ahead of the 62 handle and from there resumed the decline on the European open, now testing daily lows near 61.15 levels.

The latest sell-off in the black gold can be attributed to souring risk sentiment after fresh US-China spat-related crept in and dampened the appetite for the higher-yielding oil while the rising tensions between the US and Iran over the oil sanctions also continue to remain a drag on the market mood.

Further, the barrel of WTI also remains weighed down by the latest US Energy Information Administration (EIA) report released on Tuesday that said that the EIA cut its 2019 world oil demand growth forecast by 20,000 bpd to 1.38 million bpd while the US oil production is seen higher at 12.45 million bpd this year vs. the current 12.3 million bpd.

Oil prices look vulnerable and could breach the 61 support in the session ahead, paving way for a test of the 60.50 psychological level, as the focus shifts towards the EIA weekly crude stockpiles data due at 1430 GMT. Meanwhile, the surge in the Chinese oil imports to monthly highs failed to offer little support to the oil bulls.

WTI Technical Levels