WTI oil spiked to new low on Wednesday ($56.70, the lowest since January 2021), as deteriorating global economic outlook continues to deflate oil prices.
The latest package of US import tariffs on China goods (104%) further fueled global uncertainty over a clash between two largest world economies and biggest oil consumers.
Oil price is in steep fall for the fifth consecutive day, following last week’s announcement of US reciprocal tariffs.
Bears so far show no signs of fatigue as mounting worries on negative impact of escalating trade war and the latest decision of OPEC+ to further increase production, continue to produce strong tailwinds to bears.
The only bright moment in the whole story was unexpected drop in US crude inventories (API report, released on Tuesday) which point to increased oil demand in the US, although providing no relief for oil prices.
Technical picture is bearish on daily chart and contributes to overall negative near term outlook, with reaction on strongly oversold conditions likely to mark positioning for fresh push lower.
Initial resistances lay at $60.00 and $60.40, with extended upticks to be ideally capped under $62.50/$63.00 zone.
Next target lays at $53.87 (Fibo 61.8% retracement of larger $6.52/$130.48 uptrend), guarding psychological $50.00 level.
Res: 58.95; 60.00; 60.40; 61.09
Sup: 56.70; 55.87; 55.15; 53.87
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