West Texas Intermediate (WTI) rebound is short-lived – Bears to seek further stop-losses – U.S. jobs data awaits
West Texas Intermediate (WTI) crude oil prices settled lower Thursday after an attempt to recover from the six-month lows ended in a dead cat bound as fresh demand concerns in the United States and China linger while output from the U.S. remains near record highs.
U.S. output remained near record highs of over 13 million barrels per day, U.S. Energy Information Administration data showed on Wednesday.
Meanwhile, according to China’s customs data, crude oil imports in November fell 9% from a year earlier as high inventory levels, weak economic indicators, and slowing orders from independent refiners weakened demand.
(WTI) bearish sentiment has now close to a -10% loss since OPEC+, the Organization of the Petroleum Exporting Countries (OPEC) and allies, announced a combined 2.2 million barrels per day (bpd) in voluntary output cuts for the first quarter of next year at their meeting on 30 November.
On Tuesday, Russian Deputy Prime Minister Alexander Novak said the producer group stood ready to strengthen oil supply cuts in the first quarter of 2024.
Based on the technical outlook, the Relative Strength Index (RSI) 3-day ‘lookback’ indicator is negative and is oversold.
The Moving Average Convergence Divergence (MACD) oscillator is negative. The ADX (trend) indicator supports a bear trend.
Bears appear set on taking the $67.10-25 contests as further stop-losses are expected. Reassess from there.
Daily Chart West Texas Intermediate (WTI)
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