WTI drops 4% and eyes $32 mark amid risk-off, weakening demand

WTI downed by falling US demand, risk-off due to US-China woes.
Oil set for first weekly fall in five weeks, despite broad USD sell-off.
Focus remains on risk sentiment ahead of Trump’s China presser.

Dhwani Mehta FXStreet

The selling pressure around WTI (July futures on Nymex) accelerates following the break below the 33 level, as bears now target the 32 support zone heading into the key US macro data and US President Donald Trump’s response to the Hong Kong issue.

The US oil sheds 3.50% to trade at 32.60 and remains on track to book the first weekly loss in five weeks. However, the black gold is set to gain a whopping 65% in May, having reversed the crash to the historic lows.

The latest downtick in the barrel of WTI can be mainly attributed to the risk-aversion on the global markets, spurred by the escalating US-China tensions over Hong Kong’s security issue.

The anxiety ahead of Trump’s presser is also keeping the investors off the risky/ higher-yielding assets such as oil. Trump could likely to announce sanctions on the Chinese officials, which could re-ignite a trade war between both countries.

The sentiment around oil also remains undermined by fresh signs of weakening fuel demand, especially from the world’s No. 2 oil consumer, the US. The latest weekly US (Energy Information Administration) crude supplies data showed an unexpected build in the inventories, suggesting lackluster demand for oil and its products.

Meanwhile, broad-based US dollar weakness amid month-end adjustments and OPEC+ output cuts also offer any respite to the oil bulls, as the path of least resistance appears to the downside amid a risk-off market profile.

WTI technical levels to watch

The bears remain in control, with the immediate downside likely to be cushioned at 32.00 (round figure), below which could offer immediate support, below which Thursday’s low of 31.14 could be tested. Any recovery attempts would meet fresh supply around 33 mark (daily pivot point). A sustained break above the latter could open doors towards the 5-DMA barrier at 33.49.

WTI additional levels

WTI

Overview
Today last price	32.54
Today Daily Change	-0.95
Today Daily Change %	-2.81
Today daily open	33.78

Trends
Daily SMA20	29.02
Daily SMA50	25.57
Daily SMA100	37.62
Daily SMA200	47.31

Levels
Previous Daily High	34.34
Previous Daily Low	31.33
Previous Weekly High	34.74
Previous Weekly Low	29.62
Previous Monthly High	32.21
Previous Monthly Low	8.46
Daily Fibonacci 38.2%	33.19
Daily Fibonacci 61.8%	32.48
Daily Pivot Point S1	31.96
Daily Pivot Point S2	30.14
Daily Pivot Point S3	28.95
Daily Pivot Point R1	34.97
Daily Pivot Point R2	36.16
Daily Pivot Point R3	37.98

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 keeps the rangebound trade near 1.1850

EUR/USD is still under pressure, drifting back towards the 1.1850 area as Monday’s session draws to a close. The modest decline in spot comes as the US Dollar picks up a bit of support, while thin liquidity and muted volatility, thanks to the US market holiday, are exaggerating price swings and keeping trading conditions choppy.

GBP/USD flirts with daily lows near 1.3630

GBP/USD has quickly given back Friday’s solid gains, turning lower at the start of the week and drifting back towards the 1.3630 area. The focus now shifts squarely to Tuesday’s UK labour market report, which is likely to keep the quid firmly in the spotlight and could set the tone for Cable’s next move.

Gold battle around $5,000 continues

Gold is giving back part of Friday’s sharp rebound, deflating below the key $5,000 mark per troy ounce as the new week gets underway. Modest gains in the US Dollar are keeping the metal in check, while thin trading conditions, due to the Presidents Day holiday in the US, are adding to the choppy and hesitant tone across markets.

AI Crypto Update: Bittensor eyes breakout as AI tokens falter

The artificial intelligence (AI) cryptocurrency segment is witnessing heightened volatility, with top tokens such as Near Protocol (NEAR) struggling to gain traction amid the persistent decline in January and February.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.