WTI met support around $60.00/bbl, focus on trade
- Crude oil prices rebound from lows around $60.00.
- US-China trade jitters weigh on commodities.
- US production, supplies rose last week.
Prices of the barrel of American benchmark for the sweet light crude oil have managed to find some support around the critical $60.00 mark earlier in the session.
WTI now looks to trade
Prices of the West Texas Intermediate have now regained the $61.00 mark per barrel although they remain under pressure along with the rest of the risk-associated assets in response to the prevailing risk aversion.
In fact, President Trump’s comments (tweets) on the likelihood of extra tariffs on US imports of Chinese products sparked an abrupt re-emergence of the risk-off sentiment in the global markets.
In addition, the recent uptick in US crude oil production along with the almost 10M barrel build in US crude oil supplies during last week – as per the latest EIA report – have been also collaborating with the down move in prices.
It is worth mentioning that the barrel of WTI lost nearly 10% since 2019 peaks recorded in late April to today’s lows in the $60.00 neighbourhood.
What to look for around WTI
WTI climbed to fresh 6-month highs beyond the $66.00 mark per barrel last month. However, the resurgence of the risk-off mood in response to trade concerns, increasing US crude oil production and supplies have all undermined the sentiment in the last sessions. On the flip side, prices appear to be looking for some contention on the back of US sanctions against Iranian crude oil exports, turmoil in Venezuela, speculative positioning, geopolitical effervescence in Libya and the so-called ‘Saudi put’ along with the ongoing OPEC+ deal to curb oil output.
WTI significant levels
At the moment the barrel of WTI is retreating 0.26% at $61.63 and faces the next support at $59.98 (low May 6) seconded by $59.63 (50% Fibo of the October-December drop) and then $55.99 (100-day SMA). On the upside, a break above $63.75 (21-day SMA) would aim for $64.64 (high Apr.9) and finally $66.46 (2019 high Apr.23).