WTI plummets to fresh multi-month lows, approaching $45.00 mark
• Optimism over deeper-than-expected output cuts fades rather quickly.
• Global oversupply keeps buyers away ahead of the long festive break.
WTI crude oil prices extended the recent bearish trajectory and dropped to their lowest level since July 2017 in the last hour.
The latest optimism over a deeper than expected production cuts did provide a minor lift earlier today though was quickly sold into amid concerns over weak economic growth.
This coupled with rising US shale production outweighed hopes that the cartel could keep the global supply glut in check and continued attracting fresh selling on every attempted bounce.
The downfall seemed to have been aggravated by relatively thin liquidity conditions as market participants stayed away ahead of the long Christmas and the New Year holidays.
Moving ahead, the upcoming US macro data, followed by the Bakers and Hughes oil rigs count data will be looked upon for some immediate respite on the last trading day of the week.
Technical levels to watch
Today Last Price: 45.35
Today Daily change: -92 pips
Today Daily change %: -1.99%
Today Daily Open: 46.27
Previous Daily SMA20: 50.99
Previous Daily SMA50: 56.45
Previous Daily SMA100: 63.67
Previous Daily SMA200: 66.25
Previous Daily High: 47.56
Previous Daily Low: 45.74
Previous Weekly High: 53.48
Previous Weekly Low: 50.57
Previous Monthly High: 63.92
Previous Monthly Low: 49.64
Previous Daily Fibonacci 38.2%: 46.44
Previous Daily Fibonacci 61.8%: 46.86
Previous Daily Pivot Point S1: 45.49
Previous Daily Pivot Point S2: 44.7
Previous Daily Pivot Point S3: 43.67
Previous Daily Pivot Point R1: 47.31
Previous Daily Pivot Point R2: 48.34
Previous Daily Pivot Point R3: 49.13