Oil falls over a percent on trade tariffs, WTI nearing $73.00

Oil prices go for a slide as trade concerns kick the legs out from underneath US supplies drawdown.
Trade fears are taking the edge off of risk appetite through broader markets.

Joshua Gibson FXStreet

Crude oil is seeing declines with WTI knocking down to 73.40 as trade concerns take oil down the charts after a brief bullish period.

WTI lifting briefly yesterday, driven higher by a larger-than-expected draw on US fuel reserves according to the American Petroleum Institute (API), which saw a 6.8 million drawdown in oil stocks. The US' quest to see Iran shut out of oil markets by November and Libya's loss of key exporting ports to rebels were also seen as critical developments that have seen oil prices on the rise lately.

Headlines broke at the tail-end of Tuesday's US session that US President Donald Trump will be seeking more tariffs on an additional $200 billion USD worth of Chinese goods, and broader markets quickly lost their risk appetite, taking WTI down from Tuesday's high of 75.73.

WTI levels to watch

With WTI crude prices down -1.20% so far for Wednesday, support is thin from the last swing low at the 73.00 key level, while last week's bottom at 72.20 remains nearby. A bullish turn will have to break the week's current high near 74.75 before crude traders can make a push for the year's current high at 75.35.

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.

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