Search ForexCrunch
  • Prices of the WTI grinds lower to the $45.00 region.
  • Generalized cautious note weighs on traders’ sentiment.
  • The API’s weekly report on US crude inventories comes up next.

Crude oil prices trade on the defensive and within a narrow range near the $45.00 mark on turnaround Tuesday.

WTI looks to data, pandemic

Prices of the West Texas Intermediate add to Monday’s pessimism amidst the resurgence of the cautious trade after US stimulus talks have lost traction as of late and the pandemic continues to hurt oil demand prospects.

In addition, traders continue to collect benefits following the November rally and the recent OPEC+ decision to gradually taper its planned oil output cuts and are somehow anticipating a probably leg lower in response to deflating stimulus chances and fresh US-China jitters. Supporting this idea, it is worth noting that the RSI did not confirm the recent tops (near the $47.00 mark), charting a daily bearish divergence instead.

Moving forward, the API will publish its weekly report on US crude oil stockpiles later in the NA session ahead of Wednesday’s report by the EIA and Friday’s oil rig cunt.

WTI significant levels

At the moment the barrel of WTI is losing 0.59% at $45.35 and a breach of $43.94 (monthly low Dec.2) would expose $43.04 (high Nov.11) ahead of $40.12 (weekly low Nov.16). On the flip side, the next hurdle emerges at $46.66 (monthly high Dec.4) seconded by $48.39 (monthly high Mar.4) and finally $54.45 (monthly high Feb.20).