- Prices of the WTI are trading on the defensive below the $53.00 mark.
- Prospects of lower global growth weigh on crude oil.\
- API, EIA report coming up next on Wednesday and Thursday.
Prices of the WTI are giving away part of their recent up move to fresh YTD peaks beyond the $54.00 mark per barrel and slip back to the $52.70 region, where sits the 100-hour SMA.
WTI hurt by global growth forecasts
Prices of the barrel of the American benchmark for the sweet light crude oil have come under some renewed downside pressure in response to recent signs of a global slowdown, particularly stemming from Chinese fundamentals.
Reinforcing that view, IMF’s Chief C.Largarde said on Monday that the think tank revised lower its forecasts for global growth to 3.5% (from 3.7%), the lowest level in the last three years.
Moving forward, the weekly report on US crude oil supplies by the API is due tomorrow followed by the DoE’s report on Thursday.
What to look for around WTI
The ongoing OPEC+ agreement to curb oil output remains the almost exclusive source of support for prices, along with omnipresent supply concerns in Libya and Venezuela while current US sanctions limiting Iranian oil exports and a downtrend in US drilling activity also sustain the optimism around prices. However, the evident slowdown in the Chinese economy coupled with fresh projections of a deceleration in global growth has a direct impact on the demand for crude oil and carries the potential to undermine any serious bullish attempts.
WTI significant levels
At the moment the barrel of WTI is losing 2.13% at $52.72 facing the next support at $52.65 (low Jan.22) seconded by $50.34 (low Jan.14) and then $49.18 (21-day SMA). On the flip side, a breakout of $54.22 (2019 high Jan.21) would aim for $54.48 (monthly high Dec.4) and finally $58.00 (high Nov.18 2018).
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