WTI off highs, still above $ 52 ahead of US-China trade talks


  • Oil lacks follow-through upside amid increase trade anxiety.
  • Bearish US EIA Crude Stocks data also adds to the selling bias.
  • All eyes on US-China trade talks and Mid-East geopolitics.

WTI (oil futures on NYMEX) witnessed volatile trading so far this European session on Thursday, the risk tones flip-flop in anticipation of the US-China trade outcome.

Trade and geopolitics to play a pivotal role

The black gold fell over the last hour after the trade-related optimism faded and markets turned cautious ahead of the key trade talks. The US Treasury yields are seen falling alongside the Wall Street futures, as markets are not ruling out the trade arrangement to fallout, given the past experience between both the US and China.

More so, the bigger-than-expected jump in the US crude stockpiles, as reported by the Energy Information Administration (EIA) also added to the downside in the prices. The US crude stocks rose by 2.9 million barrels in the week to Oct. 4, more than double expectations of a 1.4-million-barrel increase.

However, the losses remain capped by broad-based US dollar weakness and heightened tensions between Turkey and Iran-allied Syria. The geopolitical tensions threaten to disrupt oil supplies from the OPEC producers. Further, the political unrest in the OPEC’s two oil producers, Iraq and Ecuador, further aggravates the supply disruption risks, with Ecuador oil output likely to fall by one-third amid protests.

Markets remain focussed on the US-China trade talks and fresh Mid-East geopolitical updates for the next direction on the prices.

WTI Levels to watch  

WTI

Overview
Today last price 52.56
Today Daily Change -0.11
Today Daily Change % -0.21
Today daily open 52.79
 
Trends
Daily SMA20 55.81
Daily SMA50 55.44
Daily SMA100 55.99
Daily SMA200 57.16
 
Levels
Previous Daily High 53.89
Previous Daily Low 52.48
Previous Weekly High 56.59
Previous Weekly Low 51.19
Previous Monthly High 63.13
Previous Monthly Low 52.77
Daily Fibonacci 38.2% 53.35
Daily Fibonacci 61.8% 53.02
Daily Pivot Point S1 52.22
Daily Pivot Point S2 51.64
Daily Pivot Point S3 50.81
Daily Pivot Point R1 53.63
Daily Pivot Point R2 54.46
Daily Pivot Point R3 55.04

 

 

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