WTI fades an uptick above $ 57 amid trade uncertainty
- Oil’s upside attempts appear limited by trade deal anxiety.
- Bulls supported by upbeat US EIA Crude Stocks data, Russia’s Putin.
- Trade/political developments to drive the oil market sentiment.
WTI (oil futures on NYMEX) struggles to regain the 57 handle, as the bears retain control amid looming trade risks that keep the sentiment around the higher-yielding oil dampened.
The black gold’s 3% rebound seen on Wednesday fell short of the 200-DMA and from there retreated amid renewed concerns over a likely delay in the US-China Phase One trade deal, in the wake of mounting US-China political tensions over the Hong Kong bill.
Despite the latest leg lower, the prices remain well supported by a smaller-than-expected rise in the US crude inventors, as per the latest Energy Information Administration (EIA) data released on Wednesday. The US crude stocks rose by a less-than-expected 1.4 million barrels in the week to Nov. 15.
Moreover, the latest upbeat comments from the Russian President Putin also helps cushioned the downside in the barrel of WTI. Putin said on Wednesday that Russia will continue cooperation with the OPEC+ under a global supply curbs deal.
Looking ahead, oil prices will continue to track the broader market sentiment for fresh directives, as trade-related developments remain the main market motor.
WTI Levels to watch