WTI extends losses below $73.50 amid concerns over demand

WTI loses traction near $73.30 on concerns about Oil demand.
China's Services PMI surged to 51.5 in November vs. 50.4 prior.
Oil traders await the US ISM Services PMI, due later on Tuesday.

Lallalit Srijandorn FXStreet

Western Texas Intermediate (WTI), the US crude Oil benchmark, is trading around $73.30 on Tuesday. WTI prices attract some sellers as investors are concerned about Oil demand and the uncertainty about the depth and duration of OPEC+ supply cuts.

The Organization of the Petroleum Exporting Countries and its allies (OPEC+) agreed to voluntary output cuts for the first quarter of 2024. However, investors doubt how output cutbacks will be measured.

Early Tuesday, China's Services Purchasing Managers' Index (PMI) surged to 51.5 in November from the October reading of 50.4, better than the estimation of 50.8. However, the NBS Manufacturing and Services PMI data last week came in worse than expected. The mixed Chinese economic data raises concerns about the recovery of China’s economy. This, in turn, weighs on the black gold, as China is the world's largest Oil consumer.

Looking ahead, oil traders will monitor the US ISM Services PMI due on Tuesday. Later this week, the attention will shift to the Nonfarm Payrolls on Friday. These events could significantly impact the USD-denominated WTI price. Oil traders will take cues from the data and find trading opportunities around WTI prices.

WTI US OIL

Overview
Today last price	73.41
Today Daily Change	-0.04
Today Daily Change %	-0.05
Today daily open	73.45

Trends
Daily SMA20	76.23
Daily SMA50	81.58
Daily SMA100	82.24
Daily SMA200	77.9

Levels
Previous Daily High	75.13
Previous Daily Low	72.77
Previous Weekly High	79.62
Previous Weekly Low	74.04
Previous Monthly High	83.34
Previous Monthly Low	72.39
Daily Fibonacci 38.2%	73.67
Daily Fibonacci 61.8%	74.23
Daily Pivot Point S1	72.44
Daily Pivot Point S2	71.43
Daily Pivot Point S3	70.08
Daily Pivot Point R1	74.8
Daily Pivot Point R2	76.14
Daily Pivot Point R3	77.15

(This story was corrected on December 5 at 07:12 GMT to say that China is the largest Oil consumer, not Gold.)

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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