WTI consolidates the upside near $54, OPEC cuts underpin

Lifted by OPEC output cuts, falling rigs count while global growth concerns keep the upside capped.
Focus on US-China trade talks and US supply reports for fresh trades.

Dhwani Mehta FXStreet

WTI (oil futures on NYMEX) extends its overnight consolidative mode into Asia, as the bulls continue to face exhaustion near seven-week tops of 54.48 levels.

The black gold trades modestly flat in today’s trading so far, as the sentiment remains weighed by global growth concerns after both the IMF and United Nations (UN) downgraded their outlooks. Meanwhile, the latest Chinese GDP report confirmed China slowdown fears and added further to the gloomy global economic outlook.

On Monday, the barrel of WTI extended its last week’s rally and hit fresh multi-week tops amid positive oil supply-side scenario, with the OPEC output cuts underway and falling US rigs count.

According to the latest drilling sector activity report released by the US energy services firm Baker Hughes, energy companies cut the number of rigs drilling for oil by 21 last week, the biggest decline in three years, taking the count down to 852, the lowest since May 2018, Reuters cited.

Markets now look forward to the US-China trade talks and sentiment on the global equities for fresh momentum until the release of the API crude stockpiles data due tomorrow.

WTI Technical Levels

WTI

Overview:
    Today Last Price: 53.97
    Today Daily change: -0.26 pips
    Today Daily change %: -0.48%
    Today Daily Open: 54.23
Trends:
    Daily SMA20: 49.63
    Daily SMA50: 50.88
    Daily SMA100: 59.56
    Daily SMA200: 64.03
Levels:
    Previous Daily High: 54.51
    Previous Daily Low: 53.6
    Previous Weekly High: 54.17
    Previous Weekly Low: 50.65
    Previous Monthly High: 54.68
    Previous Monthly Low: 42.45
    Daily Fibonacci 38.2%: 54.16
    Daily Fibonacci 61.8%: 53.95
    Daily Pivot Point S1: 53.72
    Daily Pivot Point S2: 53.2
    Daily Pivot Point S3: 52.81
    Daily Pivot Point R1: 54.63
    Daily Pivot Point R2: 55.02
    Daily Pivot Point R3: 55.54

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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