WTI slips below $32.00 after huge API build joined trade/political tension

WTI remains pressured after flashing the heaviest loss in a month the previous day.
API stockpile grew 8.731 million barrels versus an expected drop of 4.8 million barrels.
The rivalry between the world’s top two economies adds pressure on the energy markets.
EIA data, US-China story will be the key to follow for fresh impulse.

Anil Panchal FXStreet

WTI fails to carry the pullback from $32.00 while taking a U-turn from $32.50 to currently around $31.77 amid the initial Asian session on Thursday. While the tension between the US and China, coupled with the coronavirus (COVID-19) woes keep weighing on the black gold, weekly inventory data from the American Petroleum Institute (API) offered the latest losses to the energy benchmark before its recovery.

As per the latest API figures for the week ended on May 22, the US Weekly Crude Oil Stock surged by 8.731million barrels versus the previous draw of 4.8 million barrels.

Talking about the US-China story, the US House of Representatives recently passed a bill to sanction Chinese diplomats involved in the Xinjiang case. Even if the bill already crossed the senate a few days back, the move strengthens calls for additional sanctions on the dragon nation, as signaled by US President Donald Trump on early-Wednesday.

Also citing fears of further political tension between the world’s two largest economies is the news suggesting Hong Kong’s loss of special trading status with the US.

In a reaction to the Trump administration’s moves, Beijing’s embassy recently suggested that it will retaliate to the US meddling in the Hong Kong issue.

Against this backdrop, the market’s risk-tone heavies with the S&P 500 Futures parting ways from its Wall Street benchmark and drop 0.15% to 3,030.

While the official US Crude Oil Stocks Change from the Energy Information Administration (EIA) will be the key for oil traders, trade/political headlines from the US and China shouldn’t also be missed. Forecasts suggest the EIA stockpiles recover from -4.983 million barrels prior to -2.5 million barrels, which if matched could add downside pressure on the black gold.

Technical analysis

Unless providing a daily close below Friday’s low near $30.90, bulls remain hopeful to confront a 100-day EMA level of $35.40.

Additional impotant levels

Overview
Today last price	32.4
Today Daily Change	-1.88
Today Daily Change %	-5.48%
Today daily open	34.28

Trends
Daily SMA20	27.59
Daily SMA50	25.38
Daily SMA100	38.21
Daily SMA200	47.53

Levels
Previous Daily High	34.91
Previous Daily Low	33.51
Previous Weekly High	34.74
Previous Weekly Low	29.62
Previous Monthly High	32.21
Previous Monthly Low	8.46
Daily Fibonacci 38.2%	34.37
Daily Fibonacci 61.8%	34.04
Daily Pivot Point S1	33.56
Daily Pivot Point S2	32.83
Daily Pivot Point S3	32.16
Daily Pivot Point R1	34.96
Daily Pivot Point R2	35.63
Daily Pivot Point R3	36.35

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD stays defensive below 1.1900 as USD recovers

EUR/USD trades in negative territory for the third consecutive day, below 1.1900 in the European session on Thursday. A modest rebound in the US Dollar is weighing on the pair, despite an upbeat market mood. Traders keep an eye on the US weekly Initial Jobless Claims data for further trading impetus.

GBP/USD holds above 1.3600 after UK data dump

\GBP/USD moves little while holding above 1.3600 in the European session on Thursday, following the release of the UK Q4 preliminary GDP, which showed a 0.1% growth against a 0.2% increase expected. The UK industrial sector activity deteriorated in Decembert, keeping the downward pressure intact on the Pound Sterling.

Gold sticks to modest intraday losses as reduced March Fed rate cut bets underpin USD

Gold languishes near the lower end of its daily range heading into the European session on Thursday. The precious metal, however, lacks follow-through selling amid mixed cues and currently trades above the $5,050 level, well within striking distance of a nearly two-week low touched the previous day.

Cardano eyes short-term rebound as derivatives sentiment improves

Cardano (ADA) is trading at $0.257 at the time of writing on Thursday, after slipping more than 4% so far this week. Derivatives sentiment improves as ADA’s funding rates turn positive alongside rising long bets among traders.

The market trades the path not the past

The payroll number did not just beat. It reset the tone. 130,000 vs. 65,000 expected, with a 35,000 whisper. 79 of 80 economists leaning the wrong way. Unemployment and underemployment are edging lower. For all the statistical fog around birth-death adjustments and seasonal quirks, the core message was unmistakable. The labour market is not cracking.

Sonic Labs’ vertical integration fuels recovery in S token

Sonic, previously Fantom (FTM), is extending its recovery trade at $0.048 at the time of writing, after rebounding by over 12% the previous day. The recovery thesis’ strengths lie in the optimism surrounding Sonic Labs’ Wednesday announcement to shift to a vertically integrated model, aimed at boosting S token utility.