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  • Mentions of Hong Kong unrest by the White House diplomat, explosions in Iraq stop WTI’s further declines amid a lack of major clues.
  • The energy benchmark previously slumped to early-August lows on EIA crude stock report, global recession fears.

Following its slump to more than three-week low, WTI bears catch a breath around $52.70 during Thursday morning in Asia.

The latest stop in price declines can be attributed to the reports from the Al Arabiya correspondent who claims to have heard several rocket attacks within Baghdad’s Green Zone in Iraq. Adding to the price momentum could be the US White House Adviser Peter Navarro’s comments that the unrest in Hong Kong is context for the US-China trade talks. Furthermore, The Guardian reports that the Iranian President Hassan Rouhani blames the US President Donald Trump for the failed US-Iran relations, which in turn risks escalation of the tension between the countries after recently silent days.

The black gold earlier plummeted as fears of the US recession and the price-negative news concerning the US-EU trade tussle joined higher than expected inventory number, 3.104M versus 1.567M forecast, by the Energy Information Administration (EIA) Crude Oil Stocks Change for the week ended on September 27.

It should also be noted that receding geopolitical tension concerning the Middle East and restoration of oil output in Saudi Arabia have previously dragged the energy benchmark downward.

Although no oil-specific data is left for publishing during the day, purchasing managers’ index (PMI) numbers from the EU, US, and the UK, coupled with the US Factory Orders could keep intra-day traders busy.

Technical Analysis

FXStreet Analyst Ross J Burland seems to hold a bearish view while saying:

“On a technical basis, the bears have eyes for a full retracement back to the year’s lows around 50.50. This follows a recent break of trendline support and the confluence of the 200, 50 and 20-daily moving averages as well as a break of the 78.6%  Fibonacci  level (a reenactment target of the August rally) to penetrate below the 53 handle.”