WTI battles $58 amid trade deal concerns, focus on EIA data


  • WTI drops amid trade deal doubts, API US Crude Stocks build.
  • Broad US dollar rebound adds to the weakness in oil.
  • Focus on trade deal details and US EIA Crude Stocks data for fresh cues.  

WTI (oil futures on NYMEX) ran through fresh offers over the last hour and almost tested six-week lows reached on Wednesday at $57.74 before recovering slightly to now trade around the 58 level.

Despite the recent recovery attempts, the black gold continues to remain pressured by concerns over rising US crude inventories while doubts whether the US-China phase one trade deal signing would help revive the oil demand from the world’s top two oil consumers. Late Tuesday, the American Petroleum Institute (API) data showed that the US crude inventories rose by 1.1 million barrels against a draw expected.

Further, the renewed strength seen in the US dollar across its main competitors amid a flight to safety ahead of the release of the details of the phase one trade agreement also collaborates with the oil-price weakness. A stronger greenback makes the USD-sensitive oil more expensive for foreign buyers.

Meanwhile, the bulls continue to fight for support amid expectations that the OPEC+ could now extend the oil output cut deal from March to June. Source: OPEC+ reportedly begin discussions to postpone output cuts decision to June - TASS

Looking ahead, the next of relevance for oil markets remain the US Energy Information Administration (EIA) Crude Stocks Change data due later for release at 1530 GMT while the phase one trade deal signing ceremony at 1630 GMT will hog the limelight this Wednesday.

WTI Technical levels to consider

WTI

Overview
Today last price 58.00
Today Daily Change -0.14
Today Daily Change % -0.24
Today daily open 58.14
 
Trends
Daily SMA20 60.81
Daily SMA50 58.92
Daily SMA100 57.18
Daily SMA200 57.82
 
Levels
Previous Daily High 58.73
Previous Daily Low 57.75
Previous Weekly High 65.67
Previous Weekly Low 58.69
Previous Monthly High 62.38
Previous Monthly Low 55.41
Daily Fibonacci 38.2% 58.36
Daily Fibonacci 61.8% 58.12
Daily Pivot Point S1 57.68
Daily Pivot Point S2 57.23
Daily Pivot Point S3 56.7
Daily Pivot Point R1 58.66
Daily Pivot Point R2 59.19
Daily Pivot Point R3 59.64

 

 

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