- Trade pessimism continues to weigh on energy optimists.
- API data in the spotlight for now.
Increasing trade tensions between the US and China join lack of fresh catalysts from the energy sector to drag WTI down near $58.90 during the early Asian session on Wednesday.
The return of the US traders from the extended weekend was welcomed with the five-month low Dallas Fed manufacturing index while the US-China trade rift also weighed on the black gold.
After the US President Donald Trump’s frequent threats that signal China might have to bear more in the trade rift, the dragon nation have started retaliating with indications to give troubles to the world’s largest economy by availing lesser rate earth metals that are crucial mainly for the technology sector and China is the world’s biggest producer of them.
It should also be noted that there has been little news from the Middle East concerning crude off-late.
While trade tensions are going to dominate near-term price sentiment of the energy benchmark, a weekly release of the American Petroleum Institute’s (API) US crude oil stock for the week ended on May 24 will also be in the spotlight. The industry-based inventory report registered addition of 2.4 million barrels into the stockpile during its latest release.
Technical Analysis
A 100-day simple moving average (SMA) near $58.50 can keep limiting near-term declines ahead of dragging the quote down to latest low around $57.30. Additionally, $55.00 could gain sellers’ attention past-$57.30.
Meanwhile, 200-day SMA near $60.10 could confine immediate upside whereas a break of which can propel prices to $60.70 and then to $62.50 numbers to the north.
Share
