- WTI has found demand at a key support level at the 23.6% fibo retracement of the Oct decline.
- WTI is currently trading at 52.04, down from a high of 52.47 and up from a low of 50.87.
WTI is stablising in the downside correction of the recent recovery highs at 53.54. The EIA, (The U.S. Energy Information Administration ), cut its 2019 Brent oil-price forecast and issued its 2020 views. The EIA cut its previous 2019 price forecast by 0.8% for Brent crude to $60.52 a barrel and said it expects to see an average of $64.76 in 2020, keeping its forecast for West Texas Intermediate crude prices at $54.19 for 2019. The EIA expects to see an average of $60.76 in 2020 and also forecast U.S. crude output of 12.07 million barrels a day this year. Output next year is expected to average 12.86 million barrels a day.
Elsewhere, there has been some positive sentiment from China. China is countering a run of weak data and has been promising a number of stimulus measures. This support risky asset classes such as oil. The suggested measures have included larger tax cuts and sufficient monetary support. China's PBoC and the MoF alongside a stable CNY overnight (currently at a 5-month high) is supporting risk appetite and the price of oil.
Much more needed to convince markets
Analysts at TD Securities pointed out, however, that "we will need to see concrete signs of action before markets are convinced, but the comments are in the right direction," analysts at TD Securities argued, "In particular, they are focusing on areas of pressure such as autos, weakness in private companies as well as highlighting prospects for major and broad-based tax cuts." However, the trade data earlier this week were poorer-than expected and have been underlining worries that the country’s economy is locked in a downturn which should be a warning to the bulls.
WTI levels
- Support levels: 51.30 50.26 49.59
- Resistance levels: 52.41 53.01 53.68
From a technical standpoint, that daily doji had started to play out this week but the downside has been held up at the 23.6% fibo retracement around 50.50. However, a break there should encourage additional speculative shorts as the bulls step aside. Bears can hunt down the psychological 50 figure and then 48.20 as a key confluence support area to target.
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 holds below 1.0750 ahead of key US data
EUR/USD trades in a tight range below 1.0750 in the European session on Friday. The US Dollar struggles to gather strength ahead of key PCE Price Index data, the Fed's preferred gauge of inflation, and helps the pair hold its ground.
USD/JPY stays firm above 156.00 after BoJ Governor Ueda's comments
USD/JPY stays firm above 156.00 after surging above this level on the Bank of Japan's decision to leave the policy settings unchanged. BoJ Governor said weak Yen was not impacting prices but added that they will watch FX developments closely.
Gold price oscillates in a range as the focus remains glued to the US PCE Price Index
Gold price struggles to attract any meaningful buyers amid the emergence of fresh USD buying. Bets that the Fed will keep rates higher for longer amid sticky inflation help revive the USD demand.
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.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.