11 Jan 2016
WTI drops below $33.00, China weighs
FXStreet (Edinburgh) - Crude oil prices are extending its bearishness today, currently dropping below the $33.00 handle per barrel.
WTI lower on Chinese concerns
The ongoing supply glut surrounding crude oil plus a potential removal of Iran sanctions at some point in the medium term keeps weighing on traders’ sentiment at the beginning of the year.
Fanning the downside pressure, concerns over the persistent weak tone in the Chinese equity markets and the potential slowdown of the economy have become another source of oil weakness as of late.
“Technical indicators give little reason to think that a significant low is at hand. Some near-term consolidation is possible, but resistance is seen in the $34.60-$35.35 area. Many observers are to be looking at sub-$30 levels”, noted analysts at BBH.
In the data space, EIA’s weekly report on inventories and the US oil-rig count by Baker Hughes will be published ahead in the week.
WTI levels to watch
At the moment the barrel of WTI is losing 0.74% at $32.66 and a breakdown of $30.00 (psychological level) would aim for $29.66 (monthly low Dec.2003) and finally $28.47 (monthly low Nov.2003). On the other hand, the next resistance aligns at $38.39 (high Jan.4) followed by $39.75 (55-day sma) and then $41.36 (downtrend from $50.92).
WTI lower on Chinese concerns
The ongoing supply glut surrounding crude oil plus a potential removal of Iran sanctions at some point in the medium term keeps weighing on traders’ sentiment at the beginning of the year.
Fanning the downside pressure, concerns over the persistent weak tone in the Chinese equity markets and the potential slowdown of the economy have become another source of oil weakness as of late.
“Technical indicators give little reason to think that a significant low is at hand. Some near-term consolidation is possible, but resistance is seen in the $34.60-$35.35 area. Many observers are to be looking at sub-$30 levels”, noted analysts at BBH.
In the data space, EIA’s weekly report on inventories and the US oil-rig count by Baker Hughes will be published ahead in the week.
WTI levels to watch
At the moment the barrel of WTI is losing 0.74% at $32.66 and a breakdown of $30.00 (psychological level) would aim for $29.66 (monthly low Dec.2003) and finally $28.47 (monthly low Nov.2003). On the other hand, the next resistance aligns at $38.39 (high Jan.4) followed by $39.75 (55-day sma) and then $41.36 (downtrend from $50.92).