• WTI retreats towards six-week low flashed the previous day.
  • Fears of US-China trade war join geopolitical and virus-led downbeat sentiment.
  • API marked oil inventory build, EIA stockpile eyed.
  • US dollar moves and risk catalysts will be important to watch.

WTI fades recovery moves from early February low while easing to $57.60 amid Wednesday’s Asian session. In doing so, the oil benchmark bears the burden of risk-off mood following the downbeat private inventory data.

As per the latest Weekly Crude Oil Stock report from the American Petroleum Institute (API), oil stockpiles for the week ended on March 19 rose from -1.000M to +2.927M. Given the industry data, WTI traders will wait for confirmation from the official Crude Oil Stocks Change figures for the stated period from the Energy Information Administration (EIA), expected -0.908M versus +2.396M prior.

It should, however, be noted that the fears of a slower global economic recovery and the US dollar strength are likely key hurdles for the energy benchmark. Recently, extended lockdowns in Europe and geopolitical fears emanating from North Korea and China have joined the doubts over the Sino-American trade deals to weigh on the risks.

This resulted in the US dollar’s safe-haven buying and dragged down the commodities, offering a double-barrel attack on the WTI. However, the oil buyers have hopes amid chatters over US-Russia pipeline jitters and Saudi-Iran tussle.

As a result, WTI traders will keep their eyes over the risk headlines for fresh impulse while also observing US inventories and Durable Goods Orders, not to forget Fedspeak, to seek a corrective pullback ahead of next week’s OPEC meeting.

Technical analysis

Despite piercing off the yearly support line and 50-day SMA, WTI sellers await a clear break of $57.00 to confirm the south-run.

additional important levels

Overview
Today last price 57.6
Today Daily Change 0.20
Today Daily Change % 0.35%
Today daily open 57.4
 
Trends
Daily SMA20 62.93
Daily SMA50 58.72
Daily SMA100 52.27
Daily SMA200 46.36
 
Levels
Previous Daily High 61.34
Previous Daily Low 57.27
Previous Weekly High 66.43
Previous Weekly Low 58.33
Previous Monthly High 63.72
Previous Monthly Low 51.6
Daily Fibonacci 38.2% 58.82
Daily Fibonacci 61.8% 59.78
Daily Pivot Point S1 56
Daily Pivot Point S2 54.6
Daily Pivot Point S3 51.94
Daily Pivot Point R1 60.07
Daily Pivot Point R2 62.73
Daily Pivot Point R3 64.13

 

 

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