Slobodan Drvenica
Windsor Brokers
WTI OIL
WTI oil future contract for May accelerated lower in early Monday's trading and hit the lowest since 1999 on over 16% fall during Asian / early European trading. The sentiment remains very weak and traders continue panic selling as demand weakens on daily basis and fears that US storage will fill soon. Weak global consumption over pandemic lockdown flooded markets with oil, with the latest decision of OPEC+ group to reduce daily production by 9.7 million bpd that will be effective from the beginning of May, having no positive impact on crashing oil prices. The contract fell to the lowest in 21 year at $14.20 zone in European trading on Monday, with next target at $10, coming in focus. Earlier comments that oil price can fall as low as $10 per barrel that would strongly hit all sectors in oil industry and likely be fatal for many oil refiners, are just step ahead of becoming reality. We predicted that oil price will be in a free-fall after break of critical $20 support zone and now witnessing the action. Some brief upticks can be expected meantime, more as positioning than any serious recovery attempts, however, oil is expected to face strong headwinds from $10 zone, where some basing attempts could be anticipated. Broken $20 zone marks the first significant resistance and only break here would provide temporary relief.
Res: 15.21; 16.66; 17.68; 18.88
Sup: 14.00; 13.14; 11.70; 10.00
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
Recommended Content
Editors’ Picks
EUR/USD stays weak near 1.0650 ahead of Eurozone PMI data
EUR/USD remains on the back foot near 1.0650 in European trading on Tuesday. Resurgent US Dollar demand amid a cautious risk tone weighs on the pair. Investors stay wary ahead of the preliminary Eurozone and US business PMI data.
GBP/USD eases below 1.2350, UK PMIs eyed
GBP/USD is dropping below 1.2350 in the European session, as the US Dollar sees fresh buying interest on tepid risk sentiment. The further downside in the pair could remain capped, as traders await the UK PMI reports for fresh trading impetus.
Gold price flirts with $2,300 amid receding safe-haven demand, reduced Fed rate cut bets
Gold price (XAU/USD) remains under heavy selling pressure for the second straight day on Tuesday and languishes near its lowest level in over two weeks, around the $2,300 mark heading into the European session.
PENDLE price soars 10% after Arthur Hayes’ optimism on Pendle derivative exchange
Pendle is among the top performers in the cryptocurrency market today, posting double-digit gains. Its peers in the altcoin space are not as forthcoming even as the market enjoys bullish sentiment inspired by Bitcoin price.
Focus on April PMIs today
In the euro area, focus today will be on the euro area PMIs for April. The previous months' PMIs have shown a return of the two-speed economy with the service sector in expansionary territory and manufacturing sector stuck in contraction.