WTI looks to settle below $60 as selloff on easing geopolitical tensions continues

De-escalation of US-Iran conflict continues to weigh on crude oil prices.
EIA's weekly report shows surprise build in US crude oil stocks.
Coming up on Friday: Baker Hughes Oil Rig Count.

Eren Sengezer FXStreet

Crude oil prices continued to push lower after suffering heavy losses on Wednesday as easing worries over a protracted US-Iran conflict and its potential negative impact on oil supply caused investors to book their profits following the sharp rally witnessed during the first half of the week.

The barrel of West Texas Intermediate (WTI), which touched its highest level since April at $65.60 on Wednesday, closed with a daily loss of more than 4% and was last seen trading at $59.55, erasing 0.7% on a daily basis.

Focus shifts to US crude oil stocks

In the meantime, the weekly report published by the US Energy Information Administration (EIA) on Wednesday revealed that crude oil stocks in the US increased by 1.164 million barrels in the week ending January 3rd to further weigh on crude oil prices. On Friday, Baker Hughes' Oil Rig Count will be the last relevant data of the week for the WTI.

Technical levels to watch for

WTI

Overview
Today last price	59.53
Today Daily Change	-0.48
Today Daily Change %	-0.80
Today daily open	60.01

Trends
Daily SMA20	60.93
Daily SMA50	58.64
Daily SMA100	57.04
Daily SMA200	57.9

Levels
Previous Daily High	65.67
Previous Daily Low	59.17
Previous Weekly High	64.11
Previous Weekly Low	60.67
Previous Monthly High	62.38
Previous Monthly Low	55.41
Daily Fibonacci 38.2%	61.65
Daily Fibonacci 61.8%	63.19
Daily Pivot Point S1	57.56
Daily Pivot Point S2	55.12
Daily Pivot Point S3	51.06
Daily Pivot Point R1	64.06
Daily Pivot Point R2	68.12
Daily Pivot Point R3	70.56

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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