|

WTI bears eye $79.00 amid four-day downtrend, US SPR talks in focus

  • WTI remains pressured near one-week low, down for four consecutive days.
  • US Senate Majority Leader Schumer urges for fuel sales from SPR.
  • Belarus-EU tussles, stimulus hopes fail to entertain buyers amid sluggish markets.
  • Risk catalysts, China data dump eyed for fresh impulse.

WTI takes offers to refresh intraday low around $79.20, down 0.65% on the day during early Monday. In doing so, the black gold tests the lowest levels in one week during the four-day downtrend.

Behind the moves could be the fears of the US sale of fuel from the Strategic Petroleum Reserve (SPR) as well as sluggish market sentiment. In doing so, the commodity prices ignore geopolitical tension between Eurozone and Belarus.

During the weekend, US Senate Majority Leader Chuck Schumer urged President Joe Biden administration to approve fuel sales from the nation's SPR. The talks have been loud in the last few days and may recall the sellers if approved. Though, the OPEC+ refrain to entertain easy output should challenge the oil bears.

On the other hand, the European Union’s (EU) border with Belarus recently witnessed some geopolitical tension due to migrants. “Russian President Vladimir Putin said that Russia was ready to help resolve a migrant crisis on the border between Belarus and Poland, RIA news agency reported on Sunday citing an interview on a state TV channel,” per Reuters.

It’s worth noting that uncertainty over the US stimulus and doubts on the Fed’s next move add to the inflation fears to weigh on the WTI prices off late.

Amid these plays, US 10-year Treasury yields remain depressed around 1.558%, down 2.6 basis points (bps) whereas the S&P 500 Futures print 0.12% intraday gains at the latest.

Moving on, China Retail Sales and Industrial Production for October will join the risk catalysts and inflation fears to direct short-term WTI moves. Overall, the commodity prices may witness further weakness amid challenges to the demand-supply matrix.

Technical analysis

A six-week-old support line near $79.00 restricts short-term WTI moves, a break of which will challenge the monthly low near $77.60. Alternatively, the $80.00 threshold and 20-DMA near $81.70 restrict short-term recovery.

Additional important levels

Overview
Today last price79.28
Today Daily Change-0.46
Today Daily Change %-0.58%
Today daily open79.74
 
Trends
Daily SMA2081.78
Daily SMA5077.29
Daily SMA10073.63
Daily SMA20068.83
 
Levels
Previous Daily High80.48
Previous Daily Low78.77
Previous Weekly High83.59
Previous Weekly Low78.77
Previous Monthly High84.98
Previous Monthly Low74.06
Daily Fibonacci 38.2%79.42
Daily Fibonacci 61.8%79.83
Daily Pivot Point S178.85
Daily Pivot Point S277.96
Daily Pivot Point S377.14
Daily Pivot Point R180.55
Daily Pivot Point R281.37
Daily Pivot Point R382.26

Author

Anil Panchal

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

More from Anil Panchal
Share:

Editor's Picks

EUR/USD looks weak below 1.1800

EUR/USD has slipped back under pressure, breaking through the 1.1800 support and drifting towards the weekly lows near 1.1770 ahead of the opening bell in Asia. The move reflects renewed strength in the US Dollar, with steady geopolitical tensions keeping its demand firm. Moving forward, the release of the German labour market report and flash inflation figures should keep European investors entertained on Friday.
 

GBP/USD threatens the 200-day SMA near 1.3440

GBP/USD rapidly leaves behind Wednesday’s strong advance, coming under heavy pressure and retesting the 1.3440 zone, where the critical 200-day SMA is located. Cable’s deep pullback follows the strong gains in the Greenback, while investors continue to pencil in a potential BoE rate cut in March.

Gold trims gains, slips back to around $5,170

Gold is now facing some downside pressure, hovering around the $5,170 region on Thursday. The yellow metal surrenders part of its earlier gains on the back of the resurgence of the buying interest in the Greenback. In the meantime, geopolitical tensions in the Middle East continue to limit the downside potential for now.

How AI, blockchain, stablecoins are shaping a new global economy – Circle CEO Jeremy Allaire

Artificial Intelligence (AI), blockchain technology and stablecoins are emerging as core pillars of a new global economic system, according to Circle’s CEO, Jeremy Allaire.

Changing the game: International implications of recent tariff developments

The Supreme Court ruling on International Emergency Economic Powers Act (IEEPA) tariffs provides limited relief for the rest of the world, with weighted average tariff rates modestly lower.

Bitcoin steadies as traders eye US–Iran talks

Bitcoin (BTC) price is stabilizing around $68,000 at the time of writing on Thursday after a 6.2% relief rally the previous day amid a broader downward trend.