WTI soaks up the Brexit and China contraction risks

  • West Texas Intermediate crude on the back foot.
  • Saudis may have a hard time convincing other OPEC+ members to deepen their cuts.

West Texas Intermediate, (WTI), ended -0.7% lower on Friday, printing a low of $53.34 for the day. In Asia, the markets are quiet, in anticipation of Brexit noise on an otherwise quiet data calendar.

In recent days, traders have factored in the slower Chinese economic growth which created more worries about weaker demand for oil. WTI futures fell by 15 cents, or 0.3%, to settle at $53.78 a barrel on the New York Mercantile Exchange, posting a 1.7% weekly decline.

Eyes look to OPEC

On energy markets, analysts at TD Securities has this to say, "Everything must come up aces to keep crude afloat. With a steep surplus on the horizon, crude markets remain comfortable looking past tanker war fears, supply disruptions (both structural and temporary) and boiling geopolitical tensions." Additionally, the analysts remain concerned that the "Saudis may have a hard time convincing other OPEC+ members to deepen their cuts, when they meet in December."

WTI levels

The GMMAs remain bearish and WTI remains below the 50 and 21-day moving averages, with bulls losing sight of the 57 handle around the 200 DMA. Bears will seek a break below the 50 handle which will bring the prospects of a run down to the Nov 2018 lows at 49.39 again. the 46.90 level ahead of the 18th Dec lows down at 45.77 will then be in focus. 

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.

Feed news

Latest Forex News

Editors’ Picks

Dollar in trouble, EUR/USD recovers the 1.1000 level

The American currency came under selling pressure, although the EUR/USD pair is a laggard, barely above the 1.1000 figure. Trump´s impeachment process seems to be behind the latest slide.


GBP/USD approaches 1.2900 as the greenback eases

The GBP/USD pair is at fresh weekly highs in the 1.2880 region, as speculative interest moved away from the dollar, and in spite of poor UK data.


USD/JPY slumps to fresh 10-day lows near 108.30 on falling US T-bond yields

The USD/JPY pair came under renewed bearish pressure during the American tracing hours and slumped to its lowest level in ten days at 108.25 as the dismal market mood allowed the JPY to continue to gather strength against its rivals as a safe haven.


Gold: the $1,470 regions caps the upside

Prices of the precious metal keep the positive performance in the second half of the week, although the $1,470 region continues to cap the upside for the time being.

Gold News

Crypto bulls and bears meet at the crossroads

Cryptocurrencies are experiencing sharp falls among the main actors of the top-three cryptos by market capitalization. If in the past few days XRP was the top representative of fear, now red is also the color of Bitcoin and even Ethereum.

Read more