WTI extends losses below $80.00 on buoyant US Dollar, China’s Covid woes – Crypto News – Crypto News
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WTI creeps lower toward $86.20s on weak China PMI, higher US production WTI creeps lower toward $86.20s on weak China PMI, higher US production

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WTI extends losses below $80.00 on buoyant US Dollar, China’s Covid woes – Crypto News

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  • China’s coronavirus crisis weighs on WTI price, on speculations of lower demand.
  • The Eurozone threatening to impose a cap on Russian and a buoyant US Dollar keeps WTI defensive.
  • WTI Price Analysis: A daily close below $80.00 could pave the way for a YTD low re-test.

Western Texas Intermediate (WTI), the US crude oil benchmark, remains moderately negative due to low demand concerns surrounding the crude oil market. Factors like ongoing China’s Covid-19 outbreak and reports emerging during the week for increased crude output keep the WTI price stable. At the time of writing, WTI exchanges hands around $77.46 PB.

Investors’ sentiment is mixed, spurred in part by thin liquidity conditions amid a shortened week due to the US Thanksgiving holiday. Additionally, China’s registering high number of Covid-19 cases would dent demand for the black gold, weighed on WTI price.

Newswires reported that cases peaked around 31,987 on Thursday, up from Wednesday’s 29,754. At the beginning of the week, Chinese authorities revealed measures to relax Covid-19, aiming to be less restrictive. Still, officials in some cities are again reimposing stricter measures and ordering lockdowns as they scramble to suppress the virus.

Aside from this, reports that the European Union continues its discussions to impose a price cap on Russian oil, between $65 to $70 per barrel, depressed oil prices.

Additionally, the US Dollar (USD) appreciated Friday as some short covering speculation surrounded the market. The US Dollar Index (DXY), a gauge of the greenback’s value against a basket of six peers, climbs 0.36%, up at 106,000.

WTI Price Analysis: Technical outlook

After reaching a weekly high of $82.35 PB on Tuesday, WTI prolonged its losses throughout the week. Of note, WTI falling below $80.00 PB opened the door for further downside and might test the November 21 low of $75.30 if some fundamental reasons increased uncertainty about oil demand. Notably, the Relative Strength Index (RSI) continues to fall further, meaning that sellers are gathering momentum.

Therefore, WTI’s path of least resistance is downwards. WTI’s first support would be $77.00. A break below would expose the November 21 low of $75.30, which, once cleared, could send the WTI price tumbling toward its YTD low of $74.30.

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