WTI consolidates the downside around $ 65
|- Bears fighting for control amid rising in US crude supplies.
- Looks to test 2-month lows near $ 64.50.
WTI (oil futures on NYMEX) extends its consolidative phase around the $ 65 handle in the European session, as the bear await fresh impetus for the next push lower.
Focus on US-China trade talks
The barrel of WTI stalled its recovery from two-month lows just ahead of the $ 65 level, but held steady so far this Thursday, having found support from the renewed trade talks between the US and China likely to take place later this month.
However, the upside attempts get sold-off into the fresh concerns over rising US production and storage levels. The latest EIA weekly report showed that the US crude output rose by 100,000 barrels per day (bpd) in the week ending August 10, to 10.9 million bpd while the US crude inventory levels climbed by 6.8 million barrels, to 414.19 million barrels.
Attention now turns towards the US rigs count data due tomorrow for fresh direction. In the meantime, any developments between the US and China on the trade issue for any impact on the higher-yielding asset, oil.
WTI Technical Levels
FXStreet’s Analyst, Omkar Godbole, noted: “The 14-day relative strength index (RSI) is holding below 50.00, but well above 30.00, indicating there is room for further sell-off in oil prices. Consequently, oil could soon take out the 200-day MA support of $64.61 and drop towards the support of the trend line sloping upwards from the June 2017 low and Aug 2017 low, currently located at $62.90. On the higher side, a close above the 10-day MA would invalidate the bearish view. Currently, the key short-term MA is located at $67.14.”
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.