WTI drops back below $ 52 as global growth concerns mount

Back in the red, as global growth concerns mount, outweigh OPEC cuts and Libyan supply disruption news.
Focus on USD dynamics and US weekly crude stockpiles for further impetus.

Dhwani Mehta FXStreet

WTI (oil futures on NYMEX) reversed course and returned to the red zone, now dropping nearly 2% to near 51.70 levels amid a broadly firmer US dollar and widespread risk-aversion, fuelled by mounting global economic growth concerns.

The disappointing US NFP report combined with the Eurozone Sentix Investor confidence numbers released recently added to the global growth concerns and weighed further on the European equity markets.

On Friday, the black gold rallied 4% after the OPEC announced to cut oil supply by 1.2 million barrels per day (bpd). Also, the shutdown of the 315,000-bpd El Sharara oilfield in Libya underpinned the sentiment around the barrel of WTI.

Looking ahead, the commodity will get influenced by the USD price-action and risk trends until the releases of the US weekly crude stockpiles data due tomorrow and on Wednesday.

WTI Technical Levels

WTI

Overview:
    Today Last Price: 51.65
    Today Daily change: -73 pips
    Today Daily change %: -1.39%
    Today Daily Open: 52.38
Trends:
    Previous Daily SMA20: 52.88
    Previous Daily SMA50: 60.18
    Previous Daily SMA100: 65.17
    Previous Daily SMA200: 67.08
Levels:
    Previous Daily High: 52.55
    Previous Daily Low: 52.13
    Previous Weekly High: 54.2
    Previous Weekly Low: 50.57
    Previous Monthly High: 63.92
    Previous Monthly Low: 49.64
    Previous Daily Fibonacci 38.2%: 52.39
    Previous Daily Fibonacci 61.8%: 52.29
    Previous Daily Pivot Point S1: 52.16
    Previous Daily Pivot Point S2: 51.93
    Previous Daily Pivot Point S3: 51.74
    Previous Daily Pivot Point R1: 52.58
    Previous Daily Pivot Point R2: 52.77
    Previous Daily Pivot Point R3: 53

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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