WTI consolidates the upside around $52.30 amid light trading
- WTI caught between coronavirus-led demand concerns and OPEC+ cuts hopes.
- US holiday-led quiet trading adds to the upside consolidative mode.
- Focus remains on virus updates and US weekly crude supplies for directives.
Having reached the highest level in three weeks at $52.63 in early Asia, WTI (oil futures on NYMEX) witnessed a wild ride before entering a consolidative mode around 52.30 levels, where it now wavers.
The subdued trading activity seen in the black gold can be partly attributed to thin trading, as the US traders away on account of President’s Day holiday. The bulls also take a breather after the commodity rallied nearly 3.5% last week.
Meanwhile, markets refrain from placing any directional bet on the barrel of WTI, as they remain divided between rising China’s oil demand concerns, in the wake of growing coronavirus risks and its economic impact, and expectations that the OPEC and its allies (OPEC+) will extend the output cuts to stabilize oil markets. The latest monthly oil reports by both OPEC and International Energy Agency (IEA) pointed to the dwindling 2020 oil demand growth outlook across the globe amid the coronavirus outbreak.
Markets will continue to eye the coronavirus-related updates for any impact on the risk sentiment, which will eventually influence the oil price moves. Meanwhile, the US weekly Crude Stocks Change data due later this week will remain in focus for a fresh trading direction.
WTI Technical levels to consider