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

WTI

Overview
Today last price 51.49
Today Daily Change -0.23
Today Daily Change % -0.44
Today daily open 51.72
 
Trends
Daily SMA20 53.45
Daily SMA50 57.44
Daily SMA100 56.55
Daily SMA200 56.74
 
Levels
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

 

 

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