WTI dips below $ 59 mark ahead of EIA data
|- Bearish API stockpiles data offset upbeat talks from OPEC/ Saudi.
- USD bounce weighs?
- Focus shifts to EIA inventory report.
WTI (oil futures on NYMEX) ran through fresh supply in the European session, extending its losing streak into a third day today, as the bears aim to test multi-week lows of $ 58.07 on re-emergence of oversupply concerns.
The latest bearish API and IEA reports continue to undermine the sentiment around the black gold, as rising US output levels remain a threat to the efforts made by the OPEC and non-OPEC producers to re-balance the oil market.
The IEA said in its report that the non-OPEC supply, led by the US, is likely to grow more than the demand in 2018 while the API data showed that the US crude stockpiles rose by 3.9 million barrels in the week to Feb. 9, to 422.4 million.
The barrel of WTI shrugged-off optimistic remarks from the OPEC’s Secretary General Barkindo as well as that from the Saudi Arabian Energy Minister Al-Falih, both sounding confident on the OPEC output cuts deal compliance.
Markets now look forward to the official US government figures on the crude stockpiles due later on Wednesday, which will provide fresh details on the US supply-side scenario.
WTI Technical Levels
At $ 58.86, supports are located at $ 58.50 (psychological levels), $58.07 (multi-week lows) and $57.87 (Dec 22 low). On the upside, the resistances are aligned at $59.30 (daily top) ahead of $59.65 (classic R1) and $60.00 (round figure).
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.