WTI trades with modest losses around $73.00 mark, downside potential seems limited

  • WTI Oil prices remain under some selling pressure for the second straight day on Monday.
  • Concerns over a near-term slowdown in demand continue to undermine the black liquid.
  • Fears of supply disruptions in the Middle East could lend support and limit deeper losses.

West Texas Intermediate (WTI) US Crude Oil prices drift lower for the second successive day on Monday and trade around the $73.00/barrel mark during the Asian session. The commodity, however, remains confined in a familiar trading range held over the past three weeks or so amid mixed fundamental cues, warranting caution before placing aggressive directional bets.

Extreme cold weather in the US has limited travel in large parts of the country and raised concerns about a slowdown in demand from the world’s largest fuel consumer. Furthermore, a sluggish economic recovery in China – the world's largest Oil importer – turns out to be another factor undermining the black liquid. Meanwhile, Oil markets are expected to remain well supplied in the first half of 2024, amid underwhelming production cuts from OPEC and record-high US output, and support prospects for additional near-term losses.

Investors, meanwhile, remain worried that the Israel-Hamas war could spill over into other parts of the region and disrupt Oil supply from the Middle East. This, along with the expected improvement in the global Oil demand over the next two years, is holding back bearish traders from positioning for deeper losses. In fact, both the OPEC and the International Energy Agency (IEA) last week raised the global Oil demand forecast for 2024. Apart from this, an attack on a Russian fuel export terminal over the weekend should limit losses for Oil prices.

Traders now await this week's key central bank meetings and economic readings for a fresh impetus. The Bank of Japan (BoJ) is set to announce its policy decision on Tuesday and the European Central Bank (ECB) will meet on Thursday. Apart from this, the release of the flash global PMI prints for January, along with the fourth-quarter US GDP print, will be watched for cues about fuel demand and infuse some volatility around Oil prices.

Technical levels to watch


Today last price 72.96
Today Daily Change -0.64
Today Daily Change % -0.87
Today daily open 73.6
Daily SMA20 72.62
Daily SMA50 73.56
Daily SMA100 79.53
Daily SMA200 77.34
Previous Daily High 74.6
Previous Daily Low 72.98
Previous Weekly High 74.6
Previous Weekly Low 70.63
Previous Monthly High 76.79
Previous Monthly Low 67.97
Daily Fibonacci 38.2% 73.6
Daily Fibonacci 61.8% 73.99
Daily Pivot Point S1 72.85
Daily Pivot Point S2 72.11
Daily Pivot Point S3 71.23
Daily Pivot Point R1 74.47
Daily Pivot Point R2 75.35
Daily Pivot Point R3 76.09



Share: Feed news

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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content

Recommended content

Editors’ Picks

EUR/USD flirts with 1.0700 post-US PMIs

EUR/USD flirts with 1.0700 post-US PMIs

EUR/USD maintains its daily gains and climbs to fresh highs near the 1.0700 mark against the backdrop of the resumption of the selling pressure in the Greenback, in the wake of weaker-than-expected flash US PMIs for the month of April.


GBP/USD surpasses 1.2400 on further Dollar selling

GBP/USD surpasses 1.2400 on further Dollar selling

Persistent bearish tone in the US Dollar lends support to the broad risk complex and bolsters the recovery in GBP/USD, which manages well to rise to fresh highs north of 1.2400 the figure post-US PMIs.


Gold trims losses on disappointing US PMIs

Gold trims losses on disappointing US PMIs

Gold (XAU/USD) reclaims part of the ground lost and pares initial losses on the back of further weakness in the Greenback following disheartening US PMIs prints.

Gold News

Here’s why Ondo price hit new ATH amid bearish market outlook Premium

Here’s why Ondo price hit new ATH amid bearish market outlook

Ondo price shows no signs of slowing down after setting up an all-time high (ATH) at $1.05 on March 31. This development is likely to be followed by a correction and ATH but not necessarily in that order.

Read more

Germany’s economic come back

Germany’s economic come back

Germany is the sick man of Europe no more. Thanks to its service sector, it now appears that it will exit recession, and the economic future could be bright. The PMI data for April surprised on the upside for Germany, led by the service sector.

Read more