Crude Oil extends declines, WTI aimed for $82 per barrel

Crude Oil markets are extending downside moves, WTI tips below $83.00 on Tuesday.
Despite the US PMI data beat, broad forecast misses for EU PMIs are souring the outlook on crude demand.
Geopolitical tensions from the Middle East continue to wane, further pushing down barrel costs.

Joshua Gibson FXStreet

West Texas Intermediary (WTI) Crude Oil prices are seeing extended declines on Tuesday, continuing Monday's downside push and sending WTI barrels into a new low of $82.76, a fresh one-week low as energies markets rethink their expectations of EU-led fossils demand after a broad miss on Purchasing Manager Index (PMI) figures early Tuesday.

US Manufacturing PMI edges higher to 50 in October, Services PMI improves to 50.9

US PMIs came in well above expectations, sending the US Dollar (USD) higher on Tuesday and adding to downside Crude Oil pressure; the US Composite PMI for October printed a surprise uptick into a flat 51, compared to September's 50.2 printing. Markets were expecting a decline in both the Manufacturing and Services components of the PMI, but US PMIs came in green across the board and investors lurched back into the USD.

The Pan-European PMI, on the other hand, printed broadly in the red, missing Wall Street forecasts and flubbing the latest set of forward-looking growth indicators for the EU.

Eurozone Manufacturing PMI unexpectedly drops to 43.0 in October vs. 43.7 expected

The EU HCOB Manufacturing PMI for October came in at just 43, well below the forecast 43.7 and completely snubbing the expected increase, coming in even worse than September's print of 43.4. The Services component likewise missed forecasts, printing at 47.8 against the expected steady reading of 48.7. The combined PMI Composite headline missed the anticipated 47.4, coming in at 46.5 versus the previous month's 47.2.

The big miss for EU PMI figures, combined with a USD-boosting US PMI beat, is increasing USD-denominated barrel costs and crumbling investor expectations for rising EU-based Crude Oil demand moving forward.

WTI Technical Outlook

Tuesday's decline for WTI Crude Oil sees US barrel prices tapping a fresh one-week low at $82.76, and the current downside barrier for barrel sellers will be early October's price floor of $80.63, with the 200-day Simple Moving Average (SMA) sitting near $78.00.

WTI has tumbled nearly 7% from Friday's near-term high of $89.64, and Crude Oil bulls will need to recover back to late September's highs for the year near the $94.00 major handle.

WTI Daily Chart

WTI Technical Levels

WTI US OIL

Overview
Today last price	83.44
Today Daily Change	-2.46
Today Daily Change %	-2.86
Today daily open	85.9

Trends
Daily SMA20	86.49
Daily SMA50	85.46
Daily SMA100	80.19
Daily SMA200	77.91

Levels
Previous Daily High	88.12
Previous Daily Low	85.16
Previous Weekly High	89.64
Previous Weekly Low	84.39
Previous Monthly High	93.98
Previous Monthly Low	83.09
Daily Fibonacci 38.2%	86.29
Daily Fibonacci 61.8%	86.99
Daily Pivot Point S1	84.66
Daily Pivot Point S2	83.43
Daily Pivot Point S3	81.71
Daily Pivot Point R1	87.62
Daily Pivot Point R2	89.35
Daily Pivot Point R3	90.58

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

EUR/USD stays well offered below 1.1800

The selling pressure on EUR/USD is picking up pace, with the pair slipping decisively below the key 1.1800 level and sliding to fresh two week lows as Wednesday’s session draws to a close. The move lower comes as the US Dollar finds renewed strength after the latest round of US data and the release of the FOMC Minutes. Next of note on the docket will be the US weekly Initial Jobless Claims.

GBP/USD reaches multi-day lows near 1.3500

GBP/USD reverses its initial upside momentum and is now adding to previous declines, approaching the 1.3500 region on Wednesday. Cable’s downtick comes on the back of decent gains in the Greenback and easing UK inflation figures, which seem to have reinforced the case for a BoE rate cut in March.

Gold battle to regain $5,000 continues

Gold is back on the front foot on Wednesday, shaking off part of the early week softness and challenging two-day highs near the $5,000 mark per troy ounce. The move comes ahead of the FOMC Minutes and is unfolding despite an intense rebound in the US Dollar.

Bitcoin has found or is near a bottom, extended consolidation to follow: K33

Bitcoin (BTC) is nearing or has already established a bottom, which could be followed by a sustained period of slow price movement, according to K33.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Sui extends sideways action ahead of Grayscale’s GSUI ETF launch

Sui is extending its downtrend for the second consecutive day, trading at 0.95 at the time of writing on Wednesday. The Layer-1 token is down over 16% in February and approximately 34% from the start of the year, aligning with the overall bearish sentiment across the crypto market.