WTI finds resistance ahead of $52, looks to settle below $51.50

  • US Energy Secretary says coronavirus is unlikely to have big impact on oil. 
  • Russia is yet to decide on deeper oil output cuts. 

After dropping to a daily low of $50.60 during the European trading hours, the barrel of West Texas Intermediate (WTI) staged a decisive recovery and advanced to $51.90 before losing its momentum. As of writing, the WTI was trading at $51.37, losing 0.55% on a daily basis.

Coronavirus headlines continue to drive oil prices

The sharp increase seen in the reported number of coronavirus infections on Thursday revived concerns over a dismal global oil demand outlook and weighed on the WTI. However, a spokesperson for the World Health Organization (WHO) confirmed that the spike seen in the infection numbers were caused by a broader definition of cases.

In the meantime, US Energy Secretary Brouillette on Thursday said the coronavirus outbreak was unlikely to have a significant impact on oil prices.

"If the Chinese market is off by half a million barrels, that is 0.5% of total market, we are not going to see that impact on pricing very dramatically," Brouillette told Reuters.

On the other hand, Russia hasn't yet decided whether it will agree to deeper oil production reduction recommended by OPEC+ Joint Technical Committee (JTC) last week. 

Technical levels to watch for


Today last price 51.49
Today Daily Change -0.23
Today Daily Change % -0.44
Today daily open 51.72
Daily SMA20 53.45
Daily SMA50 57.44
Daily SMA100 56.55
Daily SMA200 56.74
Previous Daily High 51.9
Previous Daily Low 50.06
Previous Weekly High 52.29
Previous Weekly Low 49.44
Previous Monthly High 65.45
Previous Monthly Low 51.05
Daily Fibonacci 38.2% 51.2
Daily Fibonacci 61.8% 50.77
Daily Pivot Point S1 50.56
Daily Pivot Point S2 49.39
Daily Pivot Point S3 48.72
Daily Pivot Point R1 52.4
Daily Pivot Point R2 53.07
Daily Pivot Point R3 54.24



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

Latest Forex News

Editors’ Picks

EUR/USD looks to test 1.0800 ahead of German ZEW

Despite the latest recovery attempt from a new 34-month of 1.0823 reached in early Asia, the sentiment around the EUR/USD pair remains undermined by the German economic growth concerns and broad US dollar strength. Focus on German ZEW, coronavirus updates.


GBP/USD extends losses to sub-1.3000 area, UK unemployment rate in focus

GBP/USD stays mildly negative around 1.30 while heading into the London open on Tuesday. UK’s Brexit negotiator shares the same view as PM Boris Johnson, increases the risks of hard departure. UK employment statistics will be the key to clarify on the BOE’s bearish bias.


UK jobs preview: 3 reasons why Cable could bounce even if wage growth slows

Lower wages are bad news for workers and usually also for the pound – but these are abnormal times, and sterling may shine in response to the UK's December jobs report. The focus is on wage growth 

Read more

Gold: Positive beyond six-week-old falling trendline

Gold prices take the bids to $1,586.50, +0.35%, during the pre-European session on Tuesday. The yellow metal recently broke a downward sloping trend line stretched from January 08. Early-month top on the buyer’s radar.

Gold News

FXStreet launches Real-Time Trading Signals

FXStreet Signals offers access to explanatory live webinars, real-time notifications when signals are triggered and exclusive membership to the company’s Telegram group, where users get direct guidance by our analysts and get room to discuss and interact.

More info