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  • Firmer US dollar, record Saudi output drag oil prices back into the red zone.
  • Eyes on the US API weekly crude stockpiles and OPEC meetings for fresh impetus.

WTI (oil futures on NYMEX) resumes its downslide on Tuesday, following a temporary reversal seen a day before, as persisting oversupply worries continue to dampen the market sentiment.

The barrel of WTI extends its overnight retreat and now looks to test the 50.50 demand area on looming concerns that the record Saudi Arabian production will add to an emerging global supply overhang amid dwindling demand growth, as global economic slowdown fears resurface.

Further, broad-based US dollar strength following the latest Trump’s comments that he would push ahead with tariffs on Chinese goods, collaborates to the weakness in the USD-sensitive oil.

Markets also remain cautious ahead of the crucial Trump-Xi meeting later this week, centered on the US-China trade dispute. Also, the outcome of a meeting of the Organization of the Petroleum Exporting Countries (OPEC) likely to be held later today will have a major bearing on the oil markets.

The black gold also awaits the US API weekly crude stocks data due on the cards later at 2130 GMT for fresh insights on the US supply-side scenario, as the US output levels remain at record highs.

WTI Technical Levels

WTI

Overview:
       Today Last Price:  50.92
       Today Daily change:  -64  pips
       Today Daily change %:  -1.24%
       Today Daily Open:  51.56
Trends:
       Previous Daily SMA20:  57.17
       Previous Daily SMA50:  65.06
       Previous Daily SMA100:  66.92
       Previous Daily SMA200:  67.86
Levels:
       Previous Daily High:  51.67
       Previous Daily Low:  51.41
       Previous Weekly High:  57.42
       Previous Weekly Low:  50.13
       Previous Monthly High:  76.25
       Previous Monthly Low:  64.86
       Previous Daily Fibonacci 38.2%:  51.57
       Previous Daily Fibonacci 61.8%:  51.51
       Previous Daily Pivot Point S1:  51.42
       Previous Daily Pivot Point S2:  51.29
       Previous Daily Pivot Point S3:  51.16
       Previous Daily Pivot Point R1:  51.68
       Previous Daily Pivot Point R2:  51.81
       Previous Daily Pivot Point R3:  51.94