WTI finds support at $66, sticks to modest gains near $66.20
|- Concerns over trade conflict don't allow crude oil to make a strong recovery.
- Russia's Transfnet expect exports to Europe to fall 15% in 2018.
Crude oil prices recorded modest gains on Monday but failed to make a deep recovery as investors remain concerned over the potential negative impact of the U.S. - China trade conflict on the global demand for oil. After advancing to a session high of $66.40, the barrel of West Texas Intermediate lost its traction and edged lower toward the $66 mark. However, amid a broad-based USD sell-off, the barrel of WTI recently rose to $66.25, where it was up 0.5%, or 30 cents, on the day.
Bloomberg recently reported that during an event on Friday President Trump complained about the Fed chairman Powell's rate hikes to wealthy Republicans. Furthermore, Atlanta Fed President Raphael Bostic said that the Fed was worried about the flattening yield curve. Responding to these headlines, the US Dollar Index fell below the 96 mark for the first time in 10 days.
According to RIA news agency, Russian oil pipeline monopoly Transneft earlier today announced that it expects oil exports to Europe to be 15% lower in 2018 than it was in 2017. The company further added that oil exports were forecasted to fall by 100K barrels per day this year.
Later this week, investors will be watching the weekly crude oil inventory reports published by the API and the EIA.
Technical levels to consider
The WTI could face the first technical resistance at $66.40 (daily high/Aug. 17 high) ahead of $67.80 (20-DMA) and 68.90 (50-DMA). On the downside, supports are located at $65 (psychological level), $63.60 (Jun. 18 low) and $62 (psychological level/Apr. 9 low).
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.