WTI pierces below the $58 handle, completing a 50% retracement

  • WTI  continues to bleed from the 2020 YTD highs, completing a 50% mean reversion.
  • Supportive fundamentals yet to be fully priced in.

The price of West Texas Intermediate crude has extended the correction of the October rally beyond a 50% mean reversion following hefty weekly increases in domestic supplies of gasoline and distillates, despite crude stockpiles posting an unexpected decline.

The de-escalation of US-Iranian tensions has helped to catalyze a positioning squeeze in the energy sector and now that the Chinese and US have finally come to an agreement on some aspects of their trading relationship, there is an air of relief and a focus back on real demand and supply fundamentals. Indeed, "a rising trend in stockpiles will serve well to reassert expectations of an oversupplied market in 2020H1," analysts at TD Securities argued. 

As for futures, the West Texas Intermediate crude for February delivery lost 72 cents, or 1.2%, at $57.51 a barrel on the New York Mercantile Exchange, after gaining 0.3% on Tuesday. 

Supportive fundamentals taking a back seat

Meanwhile, some supportive fundamentals come from strength in Chinese oil imports of 45.87mt and OPEC’s commitment to keep the oil prices stable. "Further, talks around OPEC+ postponing its March meeting and extending the production cut deal till June also lent support. The EIA released its monthly report with oil production estimates at 13.30mb/d versus earlier estimates of 13.18mb/d," analysts at ANZ Bank argued.

WTI levels


Today last price 57.96
Today Daily Change -0.18
Today Daily Change % -0.31
Today daily open 58.14
Daily SMA20 60.81
Daily SMA50 58.92
Daily SMA100 57.18
Daily SMA200 57.82
Previous Daily High 58.73
Previous Daily Low 57.75
Previous Weekly High 65.67
Previous Weekly Low 58.69
Previous Monthly High 62.38
Previous Monthly Low 55.41
Daily Fibonacci 38.2% 58.36
Daily Fibonacci 61.8% 58.12
Daily Pivot Point S1 57.68
Daily Pivot Point S2 57.23
Daily Pivot Point S3 56.7
Daily Pivot Point R1 58.66
Daily Pivot Point R2 59.19
Daily Pivot Point R3 59.64



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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD pressured under 1.11 amid virus fears, ahead of the ECB

EUR/USD is trading below 1.11, under pressure as fears of the coronavirus weigh on markets. The ECB is set to leave rates unchanged and provide views about the current economic environment. 


GBP/USD consolidates gains above 1.31 after parliament seals Brexit

GBP/USD is trading above 1.31, consolidating its gains. The House of Lords gave its final seal to Brexit. Speculation ahead of the BOE's decision continues after upbeat data diminished chances for an imminent move.


Forex Today: Coronavirus fears spread and weigh on markets, Aussie surges, all eyes on the ECB

Chinese authorities have shut down access links to Wuhan, the large provincial capital where the coronavirus originates from. The news, coming ahead of the Chinese Lunar New Year, is weighing on markets. 

Read more

WTI hits 7-week low, potential bull RSI divergence on 1H

WTI oil fell to $55.68 soon before press time, the lowest level since Dec. 3, having declined by 3.73% on Wednesday. The black gold has found acceptance below $56.60, which is the 61.8% Fibonacci retracement (one of the golden ratio) of the rally from $51.03 to $65.62.

Oil News

USD/JPY drops to fresh eight-day lows near 109.50

USD/JPY extends losses and trades close to an eight-day low near 109.50 in a relatively risk-off environment, with the media headlines full of the coronavirus as it spreads internationally. Bears can look to the golden ratio around mid-108s.