WTI resumes slide, hits 3-week lows below $51.50

Stronger US dollar pushed crude oil prices lower.
Higher production in the US and demand concerns continue to weigh.

Matías Salord FXStreet

WTI (oil futures on NYMEX) dropped further during the US session and at the moment consolidates below the key $52.00 area suggesting more losses ahead. It is falling by more than 2%.

Crude oil prices reversed sharply after the beginning of the US session, breaking sharply lower. After WTI reached $52.67 turned to the downside, falling more than $1 in the first hours of the American session. It bottomed at $51.30, the lowest intraday level since January 17.

Since last Monday, WTI is under pressure moving with a clear bearish bias, retreating from levels on top of $55.00. At the moment, WTI trades at $51.50, down 2.30% for the day.

A stronger US dollar on Monday offset the improvement in risk appetite and positive expectations about the outcome of the China-US trade talks. The DXY is up for the eight-day in-a-row, and it just broke above 97.00 for the first time since late December. Gold is falling is also lower today, after rising during the previous three days.

On Tuesday and Wednesday, inventory data is due. Also important for crude oil prices are the China-US negotiations and the developments around Venezuela.

WTI

Overview:
    Today Last Price: 51.88
    Today Daily change: -1.12 pips
    Today Daily change %: -2.11%
    Today Daily Open: 53
Trends:
    Daily SMA20: 53.39
    Daily SMA50: 51.04
    Daily SMA100: 56.87
    Daily SMA200: 63.15
Levels:
    Previous Daily High: 53.28
    Previous Daily Low: 52.37
    Previous Weekly High: 55.93
    Previous Weekly Low: 52.05
    Previous Monthly High: 55.48
    Previous Monthly Low: 44.52
    Daily Fibonacci 38.2%: 52.93
    Daily Fibonacci 61.8%: 52.72
    Daily Pivot Point S1: 52.49
    Daily Pivot Point S2: 51.97
    Daily Pivot Point S3: 51.58
    Daily Pivot Point R1: 53.4
    Daily Pivot Point R2: 53.79
    Daily Pivot Point R3: 54.31

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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