• WTI remains on the back foot after easing from eight-year high on Monday.
  • French-Russia talks sound optimistic but UK PM Johnson’s comments seem to keep the risk of a war alive.
  • US Goods Trade Balance, weekly private inventory data will decorate calendar.
  • Headlines surrounding US-China trade deal may also entertain oil traders.

WTI crude oil prices extend the previous day’s pullback from a multi-day high, declining towards $90.00 during Tuesday’s Asian session.

In doing so, the black gold seems to justify the recent pause in the US Treasury yields, after easing from a two-year top on Monday. Also challenging the oil traders are the Sino-American trade tussles and recently downbeat China data. It should be noted, however, that the risk of a Russia-Ukraine war and fears of the OPEC+ members’ inability to meet production hike targets keep the energy buyers hopeful.

The US 10-year Treasury yields steady around 1.92%, close to the highest levels since late 2020, while the US stock future print mild gains around 4,485 at the latest.

That said, the French-Russian talks over Ukraine managed to refrain from any major negatives while the tone of Russian President Vladimir Putin seemed a bit confirmative. However, UK PM Boris Johnson showed readiness to take harsh measures and kept the geopolitical risks of a war on the table.

Read: Despite French efforts, shift in Putin’s tone, fears of Russia-Ukraine war are far from over

Elsewhere, the US conveyed dissatisfaction with China’s performance on the Phase 1 trade deal the previous day whereas Beijing’s downbeat Caixin Services PMI for January added to the bearish impulse. Furthermore, hawkish central bank scenario and indecision OPEC+ performance also tested oil bulls of late.

Moving on, the WTI crude oil traders will pay attention to the US Goods and Services Trade Balance for December, expected $-83B versus $-80.2B, for fresh impulse. Also important will be the industry stockpile report of the API Weekly Crude Oil Stock, prior -1.6445M, for the week ended on February 04.

Technical analysis

Monday’s bearish spinning top candlestick hints at further consolidation of oil gains towards a two-week-old ascending trend line near $87.20. However, WTI crude oil buyers remain hopeful until witnessing a daily closing below October 2021 top surrounding $85.00.

Additional important levels

Overview
Today last price 90.16
Today Daily Change -0.82
Today Daily Change % -0.90%
Today daily open 90.98
 
Trends
Daily SMA20 84.99
Daily SMA50 77.42
Daily SMA100 78.05
Daily SMA200 73.6
 
Levels
Previous Daily High 91.78
Previous Daily Low 88.85
Previous Weekly High 91.78
Previous Weekly Low 85.72
Previous Monthly High 88.22
Previous Monthly Low 74.12
Daily Fibonacci 38.2% 90.66
Daily Fibonacci 61.8% 89.97
Daily Pivot Point S1 89.3
Daily Pivot Point S2 87.61
Daily Pivot Point S3 86.37
Daily Pivot Point R1 92.22
Daily Pivot Point R2 93.46
Daily Pivot Point R3 95.15

 

 

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