WTI cracks key $ 60 support ahead of US drilling report

Dumped amid rising supply and global economic slowdown concerns.
A break below 60 level, opens the door for further downside, as USD rules the roost.

Dhwani Mehta FXStreet

WTI (oil futures on NYMEX) extends its losing streak into a tenth day today, with the rates now printing fresh 9-month lows below the critical 60 level, as the sentiment remains heavily weighed down by rising oil supplies and weakening demand outlook amid global growth concerns.

The barrel of WTI drops nearly 1.30%, having entered into a bear market, with 20% losses incurred in the last six weeks. The commodity also remains on track to book fifth straight weekly declines this week.

The breach of the $ 60 mark can be mainly attributed to the Financial Times (FT) headlines, citing that Iraq is close to reaching a deal with the Kurds that would enable the restart of oil exports from Kirkuk. This added to the rising oil supply concerns, especially with a whopping 11.6 million bpd rise in the US oil production.

Further, a broadly higher US dollar amid risk-off on the equities combined with mounting concerns of an economic slowdown continues to keep the bearish pressure intact around the black gold.

Markets now await the US PPI and prelim UoM consumer sentiment data due later in the NA session for fresh dollar trades that could influence the oil-price action while the Bakers Hughes oilfield services data, due at 1700 GMT, will offer the next move in the commodity.

WTI Technical Levels

WTI

Overview:
    Last Price: 59.89
    Daily change: -81 pips
    Daily change: -1.33%
    Daily Open: 60.7
Trends:
    Daily SMA20: 65.81
    Daily SMA50: 69.59
    Daily SMA100: 68.87
    Daily SMA200: 68.52
Levels:
    Daily High: 60.76
    Daily Low: 60.66
    Weekly High: 67.73
    Weekly Low: 62.61
    Monthly High: 76.25
    Monthly Low: 64.86
    Daily Fibonacci 38.2%: 60.7
    Daily Fibonacci 61.8%: 60.72
    Daily Pivot Point S1: 60.65
    Daily Pivot Point S2: 60.61
    Daily Pivot Point S3: 60.55
    Daily Pivot Point R1: 60.75
    Daily Pivot Point R2: 60.81
    Daily Pivot Point R3: 60.85

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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