WTI has dropped heavily on bearish fundamental combo


  • OPEC cut its forecast for growth in world oil demand in 2020 due to an economic slowdown.
  • The 23.6% level at 53 the figure is critical should 54.80 give out.

WTI has dropped heavily, down -3.41% at the time of writing. WTI has travelled from a high of $58.27 to a low of $55.63 on the day so far. Indeed, oil was on the backfoot on Wednesday, despite U.S. government data showing a fourth straight weekly fall in domestic crude supplies. Oil futures suffered a sharp decline on Wednesday, settling at their lowest in just over a week following a report that President Donald Trump discussed easing sanctions on Iran raised the potential return of Iranian oil to the market.

Trump is seeking to secure a meeting with Iranian President

Trump is seeking to secure a meeting with Iranian President Hassan Rouhani later this month, with news that U.S. National Security Adviser John Bolton, a hawk on Iran and Venezuela, who advocated for pushing Iranian oil exports to zero, would also step down. Additionally, weighing on oil prices, OPEC cut its forecast for growth in world oil demand in 2020 due to an economic slowdown, an outlook the producer group said highlighted the need for ongoing efforts to prevent a new glut of crude. Subsequently, in a combination of all of the above, West Texas Intermediate crude for October delivery dropped $1.27, or 2.2%, to $56.13 a barrel on the New York Mercantile Exchange. 

WTI levels

A daily doji had been painted on the daily time frame and the price has subsequently fallen over in a big way. The 23.6% level at 53 the figure is critical should 54.80 give out. On the upside, the Sep to Dec 2018 lows are located at 59.50 guarding the 78.6% Fibonacci retracement levels of the July swing lows and highs with the 60 handle on the radar.

 

 

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD tension remains elevated ahead of the Fed

EUR/USD is trading above 1.1050, in a narrow range ahead of the all-important Fed decision. Chair Powell is set to cut rates but signal no further stimulus is on the cards.

EUR/USD News

GBP/USD extends its falls to 1.2450 amid weak UK inflation, Brexit impasse

GBP/USD has dropped to around 1.2450 as UK headline CPI missed with 1.7% in August. Brexit negotiations remain stuck according to Chief EU negotiator Barnier. The Fed decision is eyed.

GBP/USD News

USD/JPY holds on to recovery gains above 108.00 ahead of Fed

Not only upbeat trade numbers from Japan but upbeat trade/political headlines also help the USD/JPY pair to remain firm around 108.20 prior to Wednesday’s European session. Focus on FOMC decision.

USD/JPY News

Gold seesaws around $1,500 with all eyes on FOMC

With the global traders on a wait and see approach ahead of the key event, Gold offers fewer moves while taking rounds to $1,500 during Wednesday’s Asian session. Also supporting the bulls were positive statistics from the US and the Eurozone.

Gold News

Forex Today: Fed set to trigger high volatility, oil falls, altcoins advance

Tension is mounting ahead of the Federal Reserve decision later today. Economists expect a 25 basis point rate cut amid slowing global growth and investment. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures