WTI under pressure below $ 55 mark ahead of US data

  • WTI drops in Europe as global oil demand growth concerns take over.  
  • Trade progress limits losses ahead of US Consumer and Rigs Count data.

WTI (futures on Nymex) broke its Asian consolidative mode to the downside in the European session, now looking to retest the 54.00 support zone ahead of the crucial consumer and rigs count data from the US.  

Downside looks more compelling, despite trade hopes

The barrel of WTI failed to sustain the bounce above the 55 handle and turned south, as the sentiment remains weighed down by looming concerns about a slowdown in the global economy and oil demand.

Both the OPEC and International Energy Agency (IEA), in their latest monthly oil market report, raised concerns over dwindling oil demand growth outlook. Meanwhile, increased expectations that the US could ease its stance on Iran combined with a non-event OPEC+ meeting continue to collaborate to the downside risks.

However, the downside appears cushioned amid a better market mood, fuelled by the recent progress on the US-China trade front. The US President Trump delayed tariffs on Chinese good by two weeks in response to China’s exemptions of 16 US products from its tariffs list. Meanwhile, the US President Trump hinted that he would rather get a whole deal done with China rather than an interim deal.

 Also, declining US crude inventories continue to lend support to the barrel of WTI. According to the latest US Energy Information Administration (EIA), the US crude oil stockpiles fell last week to the lowest in nearly a year to 416.1 million barrels, down 6.9 million barrels in the week to Sept. 6.

Attention turns towards the US Retail Sales, Michigan Preliminary Consumer Sentiment and Baker Hughes Rigs Count data for fresh direction on the prices.

WTI Levels to watch

    1. R3 58.6
    2. R2 57.44
    3. R1 56.26
  1. PP 55.1
    1. S1 53.92
    2. S2 52.76
    3. S3 51.58


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.

Feed news

Latest Forex News

Editors’ Picks

AUD/USD: Buyers and sellers jostle around 0.6600 as coronavirus keeps the driver’s seat

AUD/USD carries the New York session’s downbeat sentiment forward while taking rounds to 0.6600 at the start of the Asian session on Wednesday. While the coronavirus-led risk-off keeps the risk barometer under pressure, weakness in the US dollar restricted the pair’s losses.


USD/JPY consolidates losses but bears keep the baton amid coronavirus fears

USD/JPY consolidates losses to 110.20 amid the initial Asian session on Wednesday. That said, the pair portrayed the broad risk-off, led-by coronavirus fears, while declining for the third day in a row during the previous day.


Dollar domination set to continue, with or without coronavirus fears

The coronavirus-related fall in US bond yields has been weighing on the US dollar. Nevertheless – and despite worries coming from Markit's PMIs – the greenback is set to gain more ground.

Read more

Gold: Pares early losses, still in the red below $1650 level

Gold extended previous day's intraday retracement slide from multi-year tops and witnessed some follow-through long-unwinding trade on Tuesday.

Gold News

FXStreet launches Real-Time Trading Signals

FXStreet Signals offers access to explanatory live webinars, real-time notifications when signals are triggered and exclusive membership to the company’s Telegram group, where users get direct guidance by our analysts and get room to discuss and interact.

More info