WTI tumbles to fresh lows in sub-$60.00 levels

Prices of the barrel of the American reference for the sweet light crude oil are sharply lower on Thursday, breaking below the psychological $60.00 mark, or new2-month lows.

WTI breaches the 200-day SMA

Crude oil has accelerated the downside after breaking below the key support at the 200-day SMA in the $60.20 region, always tracking US-China trade concerns and a moderate pick up in the risk aversion.

Prices of the West Texas Intermediate came under strong and renewed selling pressure today after failing to extend the weekly up move beyond the $63.70/80 band earlier in the week, where emerges a Fibo retracement of the October-December decline.

In the meantime, unabated jitters on the US-China trade war and escalating tensions around Huawei (in the US) and Apple (in China) have coupled with the uptrend in US crude oil supplies, particularly after the API and the EIA reported unexpected builds during last week.

What to look for around WTI

Prices of the WTI appear to have met moderate resistance in the $63.70 region, or multi-day peaks, sparking a sharp correction lower. In the broader picture, and supporting prices, appear rising US-Iran tensions, turmoil in Libya, the so-called ‘Saudi put’ and the ongoing OPEC+ deal to cut oil output. However, US-China trade concerns remain far from abated despite the lack of fresh headlines as of late and emerge as the main hurdle for a more serious advance in crude oil.

WTI significant levels

At the moment the barrel of WTI is losing 2.89% at $59.40 and faces the next support at $57.95 (100-day SMA) followed by $55.51 (38.2% Fibo of the October-December drop) and then $54.37 (low Mar.8). On the flip side, a break above $63.74 (61.8% Fibo of the October-December drop) would aim for $64.66 (high Apr.30) and then $66.46 (2019 high Apr.23).