WTI trades on the back foot ahead of the API report
|- Fails to benefit from broad USD weakness.
- Expectations of rising US output weigh.
- API crude inventory report eyed.
WTI (oil futures on NYMEX) is seen extending its corrective slide from more-than-two-year tops, as markets resort to profit-taking ahead of the key US API crude stockpiles report.
WTI makes lower highs on daily tops, more downside in play?
The black gold also keeps losses amid expectations of rising US shale output, in the wake of the latest comments from the IEA Executive Director Birol delivered earlier today. More so, the sentiment was also dented by the latest IEA report that showed the agency cut the global oil demand growth forecasts for 2017 and 2018 by 100k bpd.
The optimism generated on the hopes of OPEC cuts deal extension beyond March 2018 was overshadowed by worries over rising US output levels, thereby, keeping any recovery in oil prices limited. Also, markets believe that the rally to mid-2015 tops may be overdone and hence, prefer to take the profits off the table.
Attention now remains on the US API crude inventories for fresh trading impetus. At the time of writing, WTI trades -0.25% lower at $ 56.62, while Brent steadies near $ 63.10.
WTI Technical Levels
Higher-side levels: 57.69 (Nov 7 high), $ 57.91 (multi-month highs), $ 58.50 (psychological levels).
Lower-side levels: 56.50 (key support), 56.00 (round number), 55.66 (Nov 6 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.