Oil recovery vanishes, WTI falling back into $47.00

WTI turns down once more after very brief recovery.
Short-lived bullish bounce strongly implies a lack of market volumes.

Joshua Gibson FXStreet

Crude barrels tried to stage a recovery from after Tuesday's freefall below the 46.00 handle, but Wednesday's peak at 48.00 sees US crude barrels again struggling, ticking back into 47.15 as energies continue to give up.

According to Xi Jiarui, chief oil analyst at consultancy JLC, “Wednesday’s recovery was short-covering. Investors quickly moved their attention to deteriorating fundamentals in the oil markets including more signs of slowing economic growth next year, record production and the lack of confidence with OPEC’s pledge to curb production.”

With WTI retracting over 30% from October's high, oil's collapse is seeing investors pack up their cash and go home, pulling their money out of the markets and feeding volatility in crude. The only glimmer of hope for crude barrels was US inventories, which showed a surprise drawdown of half a million barrels, though with producing still hitting record levels and OPEC+ unlikely to make an impact, US crude barrels are set to continue slipping.

WTI Technical Levels

WTI

Overview:
    Today Last Price: 47.47
    Today Daily change: 2.0 pips
    Today Daily change %: 0.0421%
    Today Daily Open: 47.45
Trends:
    Previous Daily SMA20: 51.26
    Previous Daily SMA50: 56.92
    Previous Daily SMA100: 63.9
    Previous Daily SMA200: 66.36
Levels:
    Previous Daily High: 48.39
    Previous Daily Low: 46.36
    Previous Weekly High: 53.48
    Previous Weekly Low: 50.57
    Previous Monthly High: 63.92
    Previous Monthly Low: 49.64
    Previous Daily Fibonacci 38.2%: 47.61
    Previous Daily Fibonacci 61.8%: 47.14
    Previous Daily Pivot Point S1: 46.41
    Previous Daily Pivot Point S2: 45.37
    Previous Daily Pivot Point S3: 44.38
    Previous Daily Pivot Point R1: 48.44
    Previous Daily Pivot Point R2: 49.43
    Previous Daily Pivot Point R3: 50.47

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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