- Sluggish data from major economies continue to weigh on welcome reports from supply-side.
- Friday’s low near $58.30, followed by $58.00 round-figure, could become bears’ immediate targets.
WTI trades near $58.50 during early Asian sessions on Monday. In spite of witnessing consecutive declines in crude stocks and rig counts, doubts over the global economic health continue to weigh on energy prices. Developments surrounding a trade deal between the US and China can offer an immediate catalyst to prices.
The US crude oil stocks change has been printing negative figures during the last two rounds and the weekly outcome of Baker Hughes rig count showed the US oil-rig counts declining for a fifth straight week. Adding to the supply-side deterioration is on-going OPEC+ supply cuts and the US sanctions on Venezuela and Iran.
Despite the aforementioned drawbacks on the supply side favoring an uptick in prices, challenges to buyers have also grown due to doubts over global economic health. Sluggish economics from the global powerhouses like the US, the EU and China continue to raise odds against the energy price rally.
Among recent positives could be Bloomberg report signaling the US-China trade developments. The report says that the US policymakers headed by US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin will negotiate the deal in Beijing with their Chinese counterparts on March 28 whereas the other-side led by Vice-Premier Liu He will visit Washington on April 03.
WTI Technical Analysis
FXStreet Analyst Ross J Burland says bears target break of 50% Fibonacci retracement of October – December moves after prices were rejected at the rising wedge's resistance.
WTI has been rejected at the rising wedges resistance while otherwise, bulls look to the 61.8% Fibo of the Oct 2018 sell-off to late Dec lows at 63.74, reviving prospects for the 70 handle. On the flip side, a break of the 50% Fibo support opens prospects for a break below trend line support and a subsequent drop to 54.50 will open a case for 50.50 as the 23.6% Fibo support structure.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD clings to gains just above 1.2500 on US PCE
GBP/USD keeps its uptrend unchanged and navigates the area beyond 1.2500 the figure amidst slight gains in the US Dollar following the release of US inflation tracked by the PCE.
Gold keeps its daily gains near $2,350 following US inflation
Gold prices maintain their constructive bias around $2,350 after US inflation data gauged by the PCE surpassed consensus in March and US yields trade with slight losses following recent peaks.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.