Oil: The downside bias dominates
USOIL crude prices are down 1.6% at $60. A low was printed earlier at $59.78, which is 22 cent shy of the low recorded on May 6. Below here would put crude prices at a near 2-month low.
The decline today is the third consecutive daily loss. EIA inventory data yesterday showed an unexpected, and large, 4.7 mln bbl increase in the US crude stockpile, which has is mixing with a sharp rise in risk aversion in global markets to produce a strong Oil-price bearish cocktail.
The US-China standoff on trade has remained the dominant sentiment influencer. China’s Commerce Ministry said today that the US needs to “correct its wrong actions” if it wants to continue negotiations on trade in a fresh sign of Beijing digging in for a protracted trade war. Two US Navy ships reportedly passed through the Taiwan Strait, which if true would be greeted as an antagonizing move by Beijing
WTI benchmark prices are down over 5% from levels seen late last week, and are down 8.4% from month-ago levels. The next USOIL downside level on a confirm break of the $60.00 (50.0% Fibonacci level since October 2018 downleg) comes at $54.60-55.50 area, the 2 months Resistance which has not converted to Support area, coinciding with the 38.2% Fob.level.
Nevertheless, from the technical perspective, daily momentum indicators are presenting a neutral to negative bias, suggesting that an intraday consolidation could follow in the short term.
Author
Having completed her five-year-long studies in the UK, Andria Pichidi has been awarded a BSc in Mathematics and Physics from the University of Bath and a MSc degree in Mathematics, while she holds a postgraduate diploma (PGdip) in
