WTI has dropped heavily on bearish fundamental combo
- OPEC cut its forecast for growth in world oil demand in 2020 due to an economic slowdown.
- The 23.6% level at 53 the figure is critical should 54.80 give out.
WTI has dropped heavily, down -3.41% at the time of writing. WTI has travelled from a high of $58.27 to a low of $55.63 on the day so far. Indeed, oil was on the backfoot on Wednesday, despite U.S. government data showing a fourth straight weekly fall in domestic crude supplies. Oil futures suffered a sharp decline on Wednesday, settling at their lowest in just over a week following a report that President Donald Trump discussed easing sanctions on Iran raised the potential return of Iranian oil to the market.
Trump is seeking to secure a meeting with Iranian President
Trump is seeking to secure a meeting with Iranian President Hassan Rouhani later this month, with news that U.S. National Security Adviser John Bolton, a hawk on Iran and Venezuela, who advocated for pushing Iranian oil exports to zero, would also step down. Additionally, weighing on oil prices, OPEC cut its forecast for growth in world oil demand in 2020 due to an economic slowdown, an outlook the producer group said highlighted the need for ongoing efforts to prevent a new glut of crude. Subsequently, in a combination of all of the above, West Texas Intermediate crude for October delivery dropped $1.27, or 2.2%, to $56.13 a barrel on the New York Mercantile Exchange.
A daily doji had been painted on the daily time frame and the price has subsequently fallen over in a big way. The 23.6% level at 53 the figure is critical should 54.80 give out. On the upside, the Sep to Dec 2018 lows are located at 59.50 guarding the 78.6% Fibonacci retracement levels of the July swing lows and highs with the 60 handle on the radar.