WTI bounces-back above $46, oversupply, risk-off still weigh

Supply overhang and global growth worries continue to keep WTI in the red.
Awaits fresh directional move on the US API crude stocks data release.

Dhwani Mehta FXStreet

WTI (oil futures on NYMEX) is seen reversing a part of today’s decline and now regaining the 46 handle, having found fresh support once again the 45.40 region.

The black gold stalled its Asian sell-off and consolidated last hours, as the bulls awaited a fresh impetus to extend the recovery heading into the US data flow and API crude stockpiles data.

Despite the latest leg higher, the sentiment around the barrel of WTI remains undermined amid rising US supplies, dwindling global economic growth and widespread risk-aversion sparked by the overnight FX flash crash following a rare revenue warning by Apple Inc.

Recall that the surging global output remains a drag, with the US crude output having risen to an all-time high of 11.537 million barrels per day (bpd) in October, the latest EIA data showed on Monday. Meanwhile, Iraq’s, the OPEC”s no. 2 producer, December exports stood at 3.73 million bpd, up from 3.37 million bpd in November.

Looking ahead, oil prices will remain at the mercy of the broader market sentiment ahead of the US ADP jobs and ISM manufacturing PMI report while the US API weekly crude inventories report will provide the next direction on the prices.

WTI Technical Levels

WTI

Overview:
    Today Last Price: 46.24
    Today Daily change: -24 pips
    Today Daily change %: -0.516%
    Today Daily Open: 46.48
Trends:
    Previous Daily SMA20: 48.76
    Previous Daily SMA50: 53.46
    Previous Daily SMA100: 62
    Previous Daily SMA200: 65.42
Levels:
    Previous Daily High: 47.94
    Previous Daily Low: 44.52
    Previous Weekly High: 47.09
    Previous Weekly Low: 42.45
    Previous Monthly High: 54.68
    Previous Monthly Low: 42.45
    Previous Daily Fibonacci 38.2%: 46.63
    Previous Daily Fibonacci 61.8%: 45.83
    Previous Daily Pivot Point S1: 44.69
    Previous Daily Pivot Point S2: 42.89
    Previous Daily Pivot Point S3: 41.27
    Previous Daily Pivot Point R1: 48.11
    Previous Daily Pivot Point R2: 49.73
    Previous Daily Pivot Point R3: 51.53

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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