WTI struggles around $63.50 as comments from Russia, IMF challenge buyers

Global growth woes and doubts over OPEC+ alliance question the energy benchmark.
$64.80 continues to act as immediate important resistance with 63.00 being nearby crucial support to watch.

Anil Panchal FXStreet

WTI is on the rounds near $63.50 during early Asian sessions on Monday. The black gold couldn’t extend its previous upside as comments from Russian Finance Minister and IMF question buyers. Manufacturing index from the US could offer intermediate trading opportunities to the energy benchmark.

Positive developments surrounding the US-China trade deal and welcome data from one of the world’s largest oil consumer, China, fuelled WTI prices to $64.65 on Friday. Though, the quote still falls short of clearing current month high near $64.80.

During the weekend, Reuters reported that the TASS news agency сited Russia’s Finance Minister Anton Siluanov said that Russia and OPEC may decide to boost production to fight for market share with the United States. However, the Russian FinMin spotted fears of oil prices sliding to as low as $40 as a catalyst that offers the dilemma.

On the other hand, the International Monetary Fund (IMF) held a thirty-ninth meeting where the global lender reiterated its fear for macro growth with statements like “risks remain tilted to the downside”.

Weekly release of the Baker Hughes US rig counts showed a decline of 3 rigs giving 1022 figure for the week ended on April 12.

Looking forward, traders may follow the US NY empire state manufacturing index for fresh clues concerning the energy benchmark. The manufacturing gauge is likely to improve to 6.0 from 3.7.

WTI Technical Analysis

Not only recent highs near $64.80 but October 2018 lows around $65.70/75 could also restrict the black gold’s upside.

On the flipside, break of $63.00 could recall $61.80 and $61.15 on the chart.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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