WTI drops in Asia on trade, rising Iran’s oil supply concerns

  • Oil opens the week lower on rising supply risks from Iran.
  •  US-China trade uncertainty and holiday-thinned markets to keep trading subdued.
  • Focus remains on trade updates and US weekly crude supplies report.

WTI (oil futures on NYMEX) kick-started a brand-new week on the back foot, reversing Friday’s solid comeback from four-day lows of 55.76. The black gold, however, manages to hold the 57 handle amid holiday-thinned quiet trading. The US and Canadian markets are closed today in observance of their respective national holidays.

The prices failed once again to hold above the 200-day Simple Moving Average (DMA) at 57.36 for the sixth straight session so far, as the bulls lack vigor amid a lack of clarity on the likely US-China trade deal while rising US crude stockpiles combined with broad-based US dollar strength also continue to hamper the sentiment around the commodity.

The latest downtick in the barrel of WTI can be mainly attributed to the weekend’s comments by the US President Trump on the US-China trade deal as well as to the discovery of a new oil field in Iran that has an estimated 53 billion barrels of crude. Rising oil supplies from Iran will only add to the existing global oversupply concerns and threaten oil’s upside attempts.

Next of note for the oil markets remain the US crude supply reports due later this week while the sentiment around the US-China trade issue will remain the main market motor.

WTI Levels to watch  


Today last price 57.15
Today Daily Change -0.29
Today Daily Change % -0.50
Today daily open 57.51
Daily SMA20 55.31
Daily SMA50 55.6
Daily SMA100 56.06
Daily SMA200 57.46
Previous Daily High 57.54
Previous Daily Low 55.84
Previous Weekly High 57.93
Previous Weekly Low 55.84
Previous Monthly High 56.97
Previous Monthly Low 51.19
Daily Fibonacci 38.2% 56.89
Daily Fibonacci 61.8% 56.49
Daily Pivot Point S1 56.39
Daily Pivot Point S2 55.26
Daily Pivot Point S3 54.69
Daily Pivot Point R1 58.09
Daily Pivot Point R2 58.66
Daily Pivot Point R3 59.79



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Editors’ Picks

EUR/USD pressured around 1.13 after jump in US jobs

EUR/USD is trading around 1.13, down after US Non-Farm Payrolls shocked with a leap of 2.5 million jobs in May, contrary to all projections. The greenback is gaining while stocks are falling, a correlation breakdown. ECB stimulus previously supported the euro.


GBP/USD retreats from highs

GBP/USD is trading below 1.27, off the highs. The pound is struggling after Chief EU Negotiator Barnier reported little progress in Brexit talks. Robust US jobs support the dollar.


Gold sees weekly closing below $1700 - a caution for bulls

The steady decline in Gold prices (futures on Comex) accelerated on Friday, as the rates closed the week below the 1700 mark for the first time in three weeks at 1688.35. A weekly closing below the key 1700 level is unlikely to bode well for the bulls.

Gold News

Institutional demand exceeds Bitcoins supply

Greyscale floods the market with fresh money to satisfy the demand of its clients. Investors, willing to pay a 29% surcharge for exposure to Bitcoin without suffering the legal and operational inconveniences. Market remains at risk on the verge of new bullish territory.

Read more

WTI rallies above $39 as focus shifts to OPEC+ meeting

Crude oil prices built on Thursday's modest gains and rose sharply on Friday boosted by the upbeat market mood optimism surrounding Saturday's OPEC+ meeting. 

Oil News