WTI refrains from further declines amid few fresh catalysts ahead of the US open, API data

WTI takes the rounds to one week’s low, flashed on Monday, as oil traders await fresh catalysts while witnessing $54.70 quote on the chart during early Tuesday.

The US markets’ close and a lack of major headlines kept highlighting the US-China trade war as the key negative for oil prices, which in turn dragged the black gold to $54.23 on the month-start trading-day.

At the political front, the US, Japan and the UK are all on their way to send drones/troops to have a safe oil transit in the Strait of Hormuz. However, Iran seems shrugging off the news as it visits Russia and France to confront the global leader when needed.

The New York Times conveys reports of Iranian diplomats visiting France, on Monday, to negotiate a deal of nearly $15 billion worth of letter of credit in hard cash in exchange of a return to compliance with the 2015 nuclear accord. Elsewhere, news also crossed wires that Russia and Iran hold secret talks to condemn the US provocation of the Middle East.

Market players will now be on the lookout of how the US traders react to latest trade/political news while the American Petroleum Institute’s (API) weekly crude oil stock report for the US, previous -11.1M, will also direct immediate price moves.

Technical Analysis

An upward sloping trend-line since August 07, at $54.08, becomes near-term key support holding the gate for fresh declines to August 26 low of $52.94 and previous month’s bottom around $50.50. Alternatively, 21-day exponential moving average (EMA) level of $55.25 can keep the prices under check ahead of pushing buyers to August 29 top of $56.76.