Forex Marketz Daily Forex News – Fully Markets Update
Looking at the U.S. West Texas Intermediate (WTI) crude oil futures contract on the above hourly MT 4 price action chart, oil is trading around $52 per barrel in a choppy price pattern as this futures contract consolidates recent gains.
WTI crude oil traders are digesting a larger than expected drop in U.S. inventory levels released by the Energy Information Agency (EIA). This helped to boost the price of the WTI crude oil contract overnight during the North American trade hours. This boost, however, petered out rather quickly as bulls lost interest just below $54.50 per barrel.
Crude oil traders are still worried about global oversupply even as coronavirus (Covid-19) vaccines are being administered around the world. Recent production cuts from the Organization for Petroleum Export Countries (OPEC) is helping cap losses. Saudi Arabia has also agreed to reduce production by another one million barrels per day in February and March.
This voluntary cut from Saudi Arabia has alleviated some concerns over a global supply overhang but a recent surge in new Covid-19 cases in China, the United States, European Union, Canada and Japan are worrying traders about the near to medium term global demand for oil. China has just posted their largest jump in Covid-19 cases in five months.
Daily WTI Crude Oil Technical Analysis
Looking at the above hourly chart U.S. crude is trading a bit lower during the morning Asian trade session on Thursday. Price action is just below $52.90 per ounce as oil wobbles around $52 per barrel. Traders are lacking direction at the moment.
Looking at the technical indicators, both the relative strength index (RSI) and the MACD histogram are neutral around their mid-lines. A daily close below the 4 January low price point at $47.20 opens the door to challenge the 2 December low price level at $43.95 per barrel.
On the upside, a breach above the 13 January high price at $53.90 per barrel could see a challenge of February 2020 high price point at $54.45. The next upside barrier lines up at 20 January 2020 high price level at $59.60 per barrel.
