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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD tension remains elevated ahead of the Fed

EUR/USD is trading around 1.1050, confined to a narrow range ahead of the all-important Fed decision. Chair Powell is set to cut rates by 25bps but signal no further stimulus is on the cards.

EUR/USD News

GBP/USD extends its falls to 1.2450 amid weak UK inflation, Brexit impasse

GBP/USD has dropped to around 1.2450 as UK headline CPI missed with 1.7% in August. Brexit negotiations remain stuck according to Chief EU negotiator Barnier. The Fed decision is eyed.

GBP/USD News

USD/JPY holds on to recovery gains above 108.00 ahead of Fed

Not only upbeat trade numbers from Japan but upbeat trade/political headlines also help the USD/JPY pair to remain firm around 108.20 prior to Wednesday’s European session. Focus on FOMC decision.

USD/JPY News

Gold: Pivots around $1500 mark, awaits FOMC policy update

Gold extended its sideways consolidative price action through the early European session on Wednesday and was seen pivoting around the key $1500 psychological mark, awaiting FOMC policy decision.

Gold News

Top 3 price prediction Bitcoin, Ripple, Ethereum: Cryptos seeing multiple launches into the universe

The Altcoin market has quickly confirmed Tuesday’s analysis with flashing rises in the last 24 hours. The two eternal aspirants to lead the crypto market – Ethereum and XRP – are rising sharply against Bitcoin and increasing its value rapidly.

Read more

Forex MAJORS

Cryptocurrencies

Signatures