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WTI on the defensive near $51 amid risk-aversion

  • US equity futures dropping, risk-aversion back in vogue.
  • Bullish EIA data, renewed optimism over US-China trade deal limit the losses.

WTI (oil futures on NYMEX) experienced some volatility last hours, now reverting to the lower bound of the recent trading range near the 51 level, as market sentiment turn sour amid a fresh selling in the US equity futures. The risk-off market environment weighs down the higher-yielding assets such as oil.

However, the bears remain cautious, as the black gold finds support from a drawdown in the US crude stockpiles, as reflected by the latest EIA report. The US crude inventories USOILC=ECI fell by 1.2 million barrels in the week to Dec. 7, compared with expectations for a decrease of 3 million barrels.  Further, easing trade tensions between the US and China also offer some comfort to the oil traders.

Looking ahead, markets will continue to digest the latest IEA oil market forecasts for 2019 while tracking the risk sentiment amid a lack of fresh catalysts.

WTI Technical Levels

WTI

Overview:
    Today Last Price: 52.1
    Today Daily change: 8.0 pips
    Today Daily change %: 0.154%
    Today Daily Open: 52.02
Trends:
    Previous Daily SMA20: 52.32
    Previous Daily SMA50: 59.36
    Previous Daily SMA100: 64.89
    Previous Daily SMA200: 66.91
Levels:
    Previous Daily High: 52.06
    Previous Daily Low: 51.89
    Previous Weekly High: 54.2
    Previous Weekly Low: 50.57
    Previous Monthly High: 63.92
    Previous Monthly Low: 49.64
    Previous Daily Fibonacci 38.2%: 52
    Previous Daily Fibonacci 61.8%: 51.95
    Previous Daily Pivot Point S1: 51.92
    Previous Daily Pivot Point S2: 51.82
    Previous Daily Pivot Point S3: 51.75
    Previous Daily Pivot Point R1: 52.09
    Previous Daily Pivot Point R2: 52.16
    Previous Daily Pivot Point R3: 52.26

 

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