WTI fails to resist above $ 55 mark ahead of API data
|- Oil weaker amid demand concerns, a potential rise in the US crude output.
- Global growth concerns-led risk aversion also keeps the upside in check.
- Markets await fresh US API Crude Stock data for fresh directives.
WTI (futures on Nymex) broke its Asian upside consolidation phase in Europe and reached fresh five-day highs at 55.28 before reversing sharply to now trade back below the 55 handle.
Risk-off dominates, drags down higher-yielding oil
The black gold failed to sustain another attempt above the 55 mark, as the bears returned amid a renewed bout of risk-aversion that gripped the European markets and dented the demand for the risk assets such as oil.
Poor German and Eurozone ZEW surveys aggravated the ongoing global economic growth concerns, eventually clouding the oil demand outlook and collaborating the latest leg down in the barrel of WTI.
Further, expectations of rising US output continue to undermine the sentiment around oil. The Energy Information Administration (EIA) showed in its latest forecast report, the US oil output from seven major shale formations is expected to rise by 85,000 barrels per day (bpd) in September to a record 8.77 million bpd, Reuters reports.
The immediate focus now shifts towards the American Petroleum Institute’s (API) weekly Crude Stock data, due at 2030 GMT, for fresh trading impetus, In the meantime, the commodity will remain at the mercy of the risk trends.
WTI Levels to watch
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