WTI down over 2.5%, approaches Feb lows near $ 58

Down in the dumps as Trump’s comments on OPEC output cut still weigh.
Record-high US production, rising stockpiles add to the bearish tone.

Dhwani Mehta FXStreet

WTI (oil futures on NYMEX) extends its rout into the European session, as the bears look to attack the Feb 2018 lows of $ 58.07. The prices are on a losing spree for the eleventh straight session, having eroded almost $ 3 so far this week.

The barrel of WTI entered into a bear market last week and remains exposed to further downside risks, as the US President Trump’s comments on the OPEC”s oil output cut policy continue to dent the sentiment around the commodity. Trump urged Saudi Arabia and other OPEC producers not cut their production in the coming months.

Trump’s comments come after Saudi Energy Minister Khalid al-Falih said on Monday the OPEC agreed there was a need to cut oil supply next year by around 1 million bpd from October levels to prevent oversupply.

Markets also fret over the rising global supply worries, with the US oil production at record highs while the crude inventories are starting to increase again. Further, the recent reports that the restart of oil exports from Kirkuk could be soon added to the weight on the black gold.

The focus now remains on the Wall Street open for fresh trading impetus, as the US API report is delayed until tomorrow 2030 GMT due to a National holiday in the US a day before.

WTI Technical Levels

WTI

Overview:
    Last Price: 58.55
    Daily change: -39 pips
    Daily change: -0.662%
    Daily Open: 58.94
Trends:
    Daily SMA20: 64.38
    Daily SMA50: 69.02
    Daily SMA100: 68.62
    Daily SMA200: 68.45
Levels:
    Daily High: 59.1
    Daily Low: 58.83
    Weekly High: 63.05
    Weekly Low: 59.24
    Monthly High: 76.25
    Monthly Low: 64.86
    Daily Fibonacci 38.2%: 59
    Daily Fibonacci 61.8%: 58.93
    Daily Pivot Point S1: 58.81
    Daily Pivot Point S2: 58.69
    Daily Pivot Point S3: 58.54
    Daily Pivot Point R1: 59.08
    Daily Pivot Point R2: 59.23
    Daily Pivot Point R3: 59.35

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.

EUR/USD loses ground below 1.1850 ahead of FOMC Minutes

The EUR/USD pair loses traction near 1.1840 during the early European session on Wednesday, pressured by renewed US Dollar demand. Traders brace for the Federal Open Market Committee Minutes for signals on future rate cuts, which will be released later on Wednesday.

When is the UK CPI data and how could it affect GBP/USD?

The United Kingdom Consumer Price Index data for January is scheduled to be published today at 07:00 GMT. GBP/USD trades slightly lower at around 1.3556 as of writing. The 20-period Exponential Moving Average trends lower at 1.3593 and continues to cap rebounds. Price holds beneath this gauge, maintaining a short-term bearish bias.

Gold: Is the $5,000 level back in sight?

Gold snaps a two-day downtrend, as recovery gathers traction toward $5,000 on Wednesday. The US Dollar recovers from the overnight sell-off as rebalancing trades resume ahead of Fed Minutes. The 38.2% Fib support holds on the daily chart for now. What does that mean for Gold?

Pi Network rally defies market pressure ahead of its first anniversary

Pi Network is trading above $0.1900 at press time on Wednesday, extending the weekly gains by nearly 8% so far. The steady recovery is supported by a short-term pause in mainnet migration, which reduces pressure on the PI token supply for Centralized Exchanges. The technical outlook focuses on the $0.1919 resistance as bullish momentum increases.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Top 3 Price Prediction: Bitcoin, Ethereum, and Ripple face downside risk as bears regain control

Bitcoin, Ethereum, and Ripple remain under pressure on Wednesday, with the broader trend still sideways. BTC is edging below $68,000, nearing the lower consolidating boundary, while ETH and XRP also declined slightly, approaching their key supports.