WTI Price Technical Forecast


WTI is in a phase of consolidation near 5-week lows, as it manages to hold the $61 mark. Peer into the 8 February WTI Price Technical Forecast for more details.

8 February, GKFX – WTI (oil futures on NYMEX) is seen moving back and forth in a tight range so far this Thursday, as the bears consolidate the recent sell-off to fresh five-week lows of $ 61.26.

The sentiment around the black gold was hit after the US EIA data showed a 1.9 million barrels buildup in the crude stockpiles in the week to Feb 2, to 420.25 mn barrels, which added to the bearish EIA report released earlier this week.

In its latest report, the EIA made upward revisions to the 2018 oil output forecasts to 10.59 million bpd, up by 320,000 bpd from its last forecast just a week earlier. With the output levels forecasted at 10.59 mn bpd, the US surpasses Saudi Arabia’s oil production levels and will undermine the efforts made by the OPEC and Russia to support the prices.

North Sea outage & Chinese oil demand cap losses

However, the barrel of WTI continues to find support from the latest reports of the second North Sea outage on the UK’s 450,000 bpd Forties pipeline network. Further, the latest China Customs data showing record Chinese crude imports last month also offers some respite to the bulls.

Looking ahead, markets await the US rigs count data due tomorrow from fresh momentum on the prices. At the time of writing, WTI trades -0.35% weaker near $ 61.58 while Brent eases -0.20% to $ 65.35.

8 February WTI Price Technical Forecast

The resistances are aligned at $61.93 (50-DMA) ahead of $62.37 (daily pivot) and $63.00 (round figure). On the downside, supports are located at $ 61.26 (5-week low), $60.56 (classic S1/ Fib S2) and $60.00 (key psychological support).

Disclaimer

This article 8 February WTI Price Technical Forecast was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you then this should be solely at your discretion and GKFX will not be held accountable in any way.

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