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.

Share: Feed news

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.