WTI trades with negative bias around $77.00, snaps three-day winning streak to multi-month top
The post WTI trades with negative bias around $77.00, snaps three-day winning streak to multi-month top appeared on BitcoinEthereumNews.com.
WTI retreats from over a three-month high, though the downside seems cushioned. US sanctions on Russia fuel worries about tightening global supply and lend support. The recent breakout through the very important 200-day SMA favors bullish traders. West Texas Intermediate (WTI) US Crude Oil prices edge lower on Tuesday and for now, seem to have snapped a three-day winning streak to the highest level since October 8 touched the previous day. The commodity trades with a negative bias around the $77.00 mark during the early part of the European session, though the fundamental backdrop warrants some caution before positioning for deeper losses. The US Treasury Department on Friday imposed tougher sanctions against Russia’s oil industry, targeting nearly 200 vessels of the so-called shadow fleet of tankers. The latest development threatens to tighten global supplies. Adding to this, speculations that US President-elect Donald Trump’s administration may tighten sanctions against flows from Iran in the coming months should continue to support Oil prices and validate the positive outlook for the commodity. Meanwhile, the incoming US macro data pointed to a resilient economy. Furthermore, expectations that Trump’s expansionary policies will boost fuel demand support prospects for a further appreciating move for Crude Oil prices. Apart from this, the ongoing US Dollar (USD) profit-taking slide, prompted by retreating US Treasury bond yields and easing fears about Trump’s disruptive trade tariffs, suggests that the path of least resistance for the black liquid is to the upside. Even from a technical perspective, last Friday’s breakout and acceptance above the very important 20-day Simple Moving Average (SMA) adds credence to the constructive outlook. Hence, any subsequent slide could be seen as a buying opportunity and is more likely to remain cushioned. Traders now look forward to the release of the US Producer Price Index (PPI), which will…
Filed under: News - @ January 14, 2025 7:27 am