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WTI drops 2% to $44.50 amid global growth concerns and rising supply

  • Sets off 2019 on a negative note as bears retain control below 45 level.
  • China factory contraction intensified economic slowdown fears.
  • Derives support from broad-based US dollar declines, as focus shifts to US weekly fuel stocks data.

WTI (oil futures on NYMEX) dropped nearly 2% on the first trading day of 2019, as worries over rising US crude output and economic slowdown continue to dampen the investors’ sentiment.

The black gold stalled its overnight bounce just shy of the 46 handle and from there fell sharply as a renewed risk-aversion wave gripped the markets following the release of downbeat Chinese Caixin manufacturing PMI that heightened looming concerns over global economic growth in 2019. The factory activity in China contracted in December amid US-China trade war fears.

Adding to oil’s slide, markets continue to fret over the surging US output, with the US crude output having risen to an all-time high of 11.537 million barrels per day (bpd) in October, the latest EIA data showed on Monday.

It’s worth noting that the barrel of WTI ended 2018 lower for the first time since 2015. Meanwhile, the focus now remains on the risk trends, as a broadly weaker US dollar continues to lend cushion some losses in the USD-sensitive oil.

WTI Technical Levels

WTI

Overview:
    Today Last Price: 44.86
    Today Daily change: -1.1e+2 pips
    Today Daily change %: -2.41%
    Today Daily Open: 45.97
Trends:
    Previous Daily SMA20: 49.07
    Previous Daily SMA50: 53.86
    Previous Daily SMA100: 62.24
    Previous Daily SMA200: 65.54
Levels:
    Previous Daily High: 46.65
    Previous Daily Low: 44.87
    Previous Weekly High: 47.09
    Previous Weekly Low: 42.45
    Previous Monthly High: 54.68
    Previous Monthly Low: 42.45
    Previous Daily Fibonacci 38.2%: 45.97
    Previous Daily Fibonacci 61.8%: 45.55
    Previous Daily Pivot Point S1: 45.01
    Previous Daily Pivot Point S2: 44.05
    Previous Daily Pivot Point S3: 43.23
    Previous Daily Pivot Point R1: 46.79
    Previous Daily Pivot Point R2: 47.61
    Previous Daily Pivot Point R3: 48.57

 

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