WTI slips below $ 58 as Saudi oil supplies to be back online next week
|- WTI downed by Saudi oil supplies restoration news, eyes $ 57.
- Focus on Mid-East geopolitical and US-China trade updates.
WTI (futures on Nymex) witnessed good two-way price movement so far this Monday, now losing nearly 1% to hit the lowest levels in six days at 57.41.
WTI aiming to close last Monday’s bullish opening gap?
The barrel of WTI started out the week on a bullish note, having rallied over 1% on weekend reports that Yemen rebels have warned Saudi and the US that Iran is considering another strike soon. Responding to this, Saudi’s Foreign Minister warned that if Iran attacks again, it would be an act of war. The Mid-East geopolitical escalation buoyed the sentiment around oil earlier on Monday.
However, the sentiment turned bearish in the European session following the reports that Saudi Arabian oil facilities will restore oil supplies by early next week. On September 14th, the Houthi rebels attacked Saudi’s oil facilities and disrupted oil production by half that accounts for about 5% of the global supplies.
Moreover, the prices also remain weighed down by risk-aversion, spurred after the Eurozone and German manufacturing PMI reports confirmed a recession and stoked global growth fears. Also, growing uncertainty over the US-China trade talks continues to dent the investors’ sentiment, in turn collaborating to the downside in the higher-yielding oil.
Looking ahead, markets will continue to weigh in the Saudi oil production news and therefore, the risks remain to the downside in oil prices. The focus will also remain on the Mid-East and trade development for near-term trading opportunities.
WTI Levels to watch
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