- Escalating US-China trade war tensions overshadow growing US-Iran rift.
- Oil will remain at the mercy of risk sentiment ahead of API crude stockpiles data.
The renewed upside in WTI (futures on Comex) lost legs in Europe once again near 63.60 levels, as the risk sentiment soured amid escalating US-China trade tensions, despite the temporary reprieve offered by the US government to the Chinese Huawei Technologies.
The demand for higher-yielding assets such as oil dampened as Asia started to feel the pinch of the intensifying US-Sino trade conflict, with Singapore, Thailand and South Korea having reported weaker fundamentals lately.
At the time of writing, the black gold is seen printing daily lows near 63.20 levels and looks to test the 63.00 support area. Moreover, the latest report that the OECD has cuts its 2019 global economic growth forecast also collaborated to the downside in oil prices.
Earlier today in Asia, the renewed threats delivered by the US President Trump on Iran, helped the barrel of WTI pop up the 63.50 barrier. But sellers continued to lurk above the last amid trade anxiety, as the focus now shifts towards the American Petroleum Institute (API) weekly crude stockpiles data due to be published later today at 2130 GMT. In the meantime, the prices will continue to remain at the mercy of the risk trends.
WTI Technical Levels