WTI dumped 3% to $ 45 on oversupply worries, risk-off

• Sold-off into risk-aversion at full steam, supply overhang fears.
• Heading back to 18-month lows ahead of API data.

WTI (oil futures on NYMEX) tumbled more than 3% on Thursday after the risk-sentiment took a big hit, as the US equity futures dropped 1.5% amid mounting US political and economic growth worries.

The partial US government shutdown combined with growing global growth concerns continue to shun investors from the higher-yielding/ risk assets such as the US equity futures, Treasury yields, oil etc.

Moreover, omnipresent supply glut worries amid swelling US crude inventories and record high US, Russian and Saudi Arabian oil production add to the weight on the black gold. Markets now look forward to the US weekly crude stocks data for fresh trading direction, with the figures from the American Petroleum Institute (API) due today and a report from the US Energy Information Administration (EIA) due out on Friday.

WTI Technical Levels