- Rebound in European equities lift sentiment, aids the oil-price recovery.
- Recovery appears capped, as global growth concerns linger.
WTI (oil futures on NYMEX) trimmed losses and swung back above the 67 handle, benefiting from the turnaround in the risk-sentiment amid a recovery in the European equities, as the Italian credit rating outlook by S+P offer some relief to the investors.
The latest leg up in the barrel of WTI can be also attributed to a fresh selling seen around the US dollar, as markets switch to the risk assets at the expense of the safe-haven greenback.
However, markets remain wary about the recovery amid global economic growth concerns, ongoing US-China trade war and the European political woes. Meanwhile, a fifth consecutive rise in the US crude inventories could also continue to weigh on the investors” sentiment. ´
Further, in an evidence of decreased investor confidence in the black gold, Hedge funds slashed their bullish wagers on the US crude in the latest week to the lowest level in more than a year, the CFTC data showed on Friday.
Attention now turns towards the US core PCE data and weekly US fuel stocks report for the next direction in the prices.
WTI Technical Levels
Resistance: 68 (10-DMA), 68.56 (Oct 19 low). 69 (round number).
Support: 66.94 (daily low), 66.50 (psychological level), 66.05 (Oct 24 low).
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