WTI: Skittish markets see oil chopping its way lower to test bull's commitments at $52.00bbls

WTI has been pressured of late, caught up in the global economic downturn concerns following a series of downbeat data releases from the Chinese coupled with political angst in Europe surrounding Brexit as well as the Sino/US trade relations and the U.S. government shutdown. 

However, the reversal of yesterday's corrective rally, (finding some support from data suggesting a slowdown in U.S. shale oil production), was down to reports that the European Union may soon launch a mechanism that would allow companies to bypass U.S. sanctions and trade with Iran, allowing for the EU to “skirt” U.S. sanctions.

Venezuela is taking the spot light

Elsewhere, Venezuela is taking the spot light. The Trump administration is targeting the political situation in Venezuela, ratcheting up pressure on President Nicolas Maduro and firing off shots by preparing to implement oil sanctions, "as soon this week if the political situation there deteriorates further,” Reuters in Venezuela reported, citing sources. In intermarkets, oil is also buffered by a correction o Wall Street today with US stocks moving higher again, albeit the price action remains skittish on opposing geopolitical headlines. 

WTI levels

From a technical perspective the weekly hanging man and the daily doji following the fresh high at the start of this week with no follow through underpins the downside trajectory still and  Prices are now en route to break cleanly below the 52 the psychological figure ahead of the 23.6% Fibo and confluence of the 13th Jan swing lows at 50.63. RSI is leaning bearishly on the daily time frames. Bull look to the 15th Jan highs at 53.54.