- WTI keeps the rebound intact but faces stiff resistance above 24.00.
- Saudi-Russia price war, broad USD rally and recession fears continue to weigh.
- Coronavirus-related updates driven risk trends and USD dynamics in focus.
Having failed several attempts to extend the recovery momentum above the 24 handle so far this Thursday, WTI (oil futures on NYMEX) has entered a consolidative mode over the last hours, as investors assess the effectiveness of the latest global stimulus measures to combat the economic fallout from the coronavirus outbreak.
The bulls remain in a wait-and-see mode while remaining hopeful that global coronavirus relief measures would help cushion the economic shock and revive the demand for oil and its products.
However, the black gold doesn’t seem to be out of the woods yet, in the face of the ongoing price war between Saudi Arabia and Russia, as the former slashed its selling prices and opened up taps after Russia failed to keep up with its commitment on the OPEC+ oil output policy.
Further, the US dollar remains broadly in demand amid increased funding stress triggered by the virus-led global markets crash and the resultant need for liquidity. Therefore, the USD-denominated oil also faces heavy downward pressure from the relentless dollar buying seen in recent times.
Traders continue to pay close attention to the coronavirus-related developments and their impact on the global markets for any near-term trading opportunities in oil while they shrug-off the weekly US crude supply reports released earlier this week.
WTI Technical levels to consider
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