WTI drops 1.5% towards $ 54 on trade risks, rising OPEC output
- Oil sold-off into US-China trade woes, rising OPEC output
- Stronger USD Index also adds to the downside in oil.
- Markets await API Crude Stocks data and trade-related news.
WTI (futures on Nymex) extends losses into a third straight day today and meanders near the lowest levels in five days just ahead of the 54 handles.
Trade concerns, Dollar dynamics to dominate
The black gold is seen reversing almost half the last week’s rally, as the sentiment continues to remain undermined by escalating US-China trade war that seen having a significant impact on the global economic growth. Markets, therefore, fret that the global economic slowdown could likely weaken the oil demand growth and eventually hurt the prices.
Moreover, persistent broad-based US dollar buying amid trade war fears-led risk-aversion also collaborates to the downbeat tone in the barrel of WTI. A stronger greenback makes the USD-denominated oil more expensive for holders in foreign currencies. The USD index sits near the highest levels seen since May 2017 at 99.35, up +0.40% so far.
Additionally, the prices remain weighed down by the latest report that the Organization of Petroleum Exporting Countries’ (OPEC) crude oil production rose in August for the first time since the start of 2019 output cutbacks. OPEC output rises for first time since start of 2019 cutbacks – Bloomberg Survey
Attention now turns towards the US weekly Crude Stocks data due later today for fresh direction on the prices. The American Petroleum Institute (API) will publish its data at 2030 GMT. Meanwhile, the Energy Information Administration’s (EIA) US crude inventory data will drop in on Thursday at 1430 GMT, in the wake of the US Labor Day holiday on Monday.
WTI Levels to watch
|Today last price||54.20|
|Today Daily Change||-0.50|
|Today Daily Change %||-0.92|
|Today daily open||54.62|
|Previous Daily High||55.12|
|Previous Daily Low||54.23|
|Previous Weekly High||56.76|
|Previous Weekly Low||52.94|
|Previous Monthly High||58.02|
|Previous Monthly Low||50.51|
|Daily Fibonacci 38.2%||54.57|
|Daily Fibonacci 61.8%||54.78|
|Daily Pivot Point S1||54.19|
|Daily Pivot Point S2||53.77|
|Daily Pivot Point S3||53.3|
|Daily Pivot Point R1||55.08|
|Daily Pivot Point R2||55.55|
|Daily Pivot Point R3||55.97|