WTI bounces off six-week lows at $57.75 ahead of API data
|- WTI stalls decline amid expectations of US Crude Stocks draw.
- Receding Middle East tensions, USD strength to cap the bounce.
- Markets look forward to US API data and trade deal signing.
WTI (oil futures on NYMEX) is trying hard to extend the recovery from six-week lows of $57.75 reached over the last hour, having regained the 58 level, at the time of writing.
The black gold extended its week-long losing streak on Tuesday, mainly fuelled by receding US-Middle East tensions after both the US and Iran decided to stand down on the military responses after this month’s missiles attacks.
Meanwhile, the markets appear to have turned risk-averse ahead of the much-awaited US-China phase-one trade deal signing scheduled on Wednesday. Therefore, the higher-yielding oil witnessed a fresh round of selling in tandem with other risk assets such as European equities, emerging currencies, etc.
However, the bulls have managed to find some support from increasing expectations that the US weekly crude oil inventories are likely to have dropped last week, according to the latest Reuters poll.
Further, strengthening Chinese crude oil demand, as suggested by the latest fuel oil imports data from China, also helps limit the falls in the commodity. China’s crude oil imports in 2019 surged 9.5% from a year earlier, setting a record for a 17th straight year, as cited by Reuters.
Markets now eagerly await the American Petroleum Institute (API) weekly US Crude Stocks data due for later in the NA session at 2130 GMT for near-term trading opportunities.
WTI Technical levels to consider
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.