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WTI hangs near multi-week low, seems vulnerable below mid-$75.00s

  • WTI is seen consolidating its recent downfall to the lowest level since July 20 touched on Wednesday.
  • Easing worries about supply disruptions in the Middle East and demand concerns continue to weigh.
  • The fundamental backdrop supports prospects for an extension of a three-week-old descending trend.

West Texas Intermediate (WTI) Crude Oil prices struggle to register any meaningful recovery on Thursday and remain on the defensive for the third straight day. The commodity currently trades around the $75.45 area, down nearly 0.15% for the day and just above its lowest level since July 20 touched on Wednesday.

Easing worries about the potential supply disruptions from the Middle East, led by the Israel-Hamas conflict, and concerns over waning demand in the US and China – the world's top consumers – continue to weigh on Oil prices. In fact, a report by the American Petroleum Institute (API) suggested that US crude inventories increased by 11.9 million barrels over the week to November 3. If confirmed, this would mark the biggest weekly build since February and point to a weakening demand.

Meanwhile, data released earlier this week showed that China's crude imports in October were robust, though the worsening economic outlook is expected to dent fuel demand. The fears resurfaced after the latest inflation figures from China indicated sustained deflationary pressures in the wake of weak discretionary spending and business activity. This comes on top of reports that Russia’s oil exports hit a near four-month high in the prior month, which eased worries about tight global supplies.

The aforementioned fundamental backdrop seems tilted in favour of bearish traders and suggests that the path of least resistance for Crude Oil prices is to the downside. That said, oscillators on the daily chart are on the verge of falling into oversold territory. This makes it prudent to wait for some near-term consolidation or a modest bounce before bearish traders start positioning for an extension of the recent well-established downward trajectory witnessed over the past three weeks or so.

Technical levels to watch

WTI US OIL

Overview
Today last price75.39
Today Daily Change-0.17
Today Daily Change %-0.22
Today daily open75.56
 
Trends
Daily SMA2083.43
Daily SMA5085.82
Daily SMA10081.48
Daily SMA20077.98
 
Levels
Previous Daily High77.46
Previous Daily Low74.94
Previous Weekly High84.85
Previous Weekly Low79.94
Previous Monthly High90.88
Previous Monthly Low80.52
Daily Fibonacci 38.2%75.9
Daily Fibonacci 61.8%76.5
Daily Pivot Point S174.52
Daily Pivot Point S273.48
Daily Pivot Point S372.01
Daily Pivot Point R177.03
Daily Pivot Point R278.5
Daily Pivot Point R379.54

Author

Haresh Menghani

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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