WTI drops to test $ 52 mark as global growth worries resurface
|- Oil back in the red on rising global economic slowdown risks amid trade.
- Gulf tanker tensions and OPEC+ output cut extension talks could limit the losses.
WTI (futures on Nymex) stalled it two-day recovery momentum and fell back into the red zone this Monday, as global economic slowdown worries regained market attention amid escalating global trade war.
Markets continue to remain wary about a potential US-China trade resolution while the latest retaliatory tariffs announced by Indian on 28 American products also continue to undermine investors’ sentiment.
However, the downside appears cushioned amid rife Middle-East tensions after two oil tankers were attacked last Thursday and the US suspected Iran behind the tensions, triggering a fresh round of risk-aversion across the board.
Moreover, the recent comments by the Saudi Arabian Energy Minister Al-Falih, backing the case for the OPEC output cuts policy extension, could also offer some support to the bulls. “We are hoping that we will reach consensus to extend our agreement when we meet in two weeks’ time in Vienna,” Al-Falih noted.
The focus now remains on the trade developments and the US weekly crude supply reports for the next direction on the prices.
WTI Technical Levels
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