- WTI under pressure on geopolitics weighing as price heads to 55 handle.
- WTI closed down 3.8% on the week, weighed down by the very rapid recovery in Saudi crude production.
A partial cease-fire between Saudi and Yemen continues to see the geopolitical risk premium priced out and WTI crude fell from a high of $56.75 to a low of $54.79 and ending the day down -0.80% and for November delivery, the price has dropped 50 cents, or 0.9%, to settle at $55.91 a barrel on the New York Mercantile Exchange. WTI closed down 3.8% on the week, weighed down by the very rapid recovery in Saudi crude production.
Meanwhile, after the largest gain in 8 months the week before, crude markets had their worst week since July last week as trade wars; Brexit risks; global growth worries and impeachment concerns weighed on market sentiment.
“Brent dropped 83c to settle at $61.91, down 3.7% on the week. Saudi Arabia agreed to a limited cease-fire in several areas in Yemen, with Houthis announcing a halt to drone/ missile attacks,” analysts at Westpac said.
WTI levels
Bears have attacked the 50-daily moving average and trendline support. The downside tests leave scop tp thee 54 handle and then the 52 psychological targets. Bulls will need to gather demand back above the 21-DMA to open prospects for the 59 handle that will then bring in the April highs at 66.58 on the wide as a target.
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