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WTI crude prices fell on Wednesday as weak Chinese and Japanese industrial data triggered concerns of an economic slowdown that could lower oil demand, and as an industry data report showed an increase in U.S. crude stockpiles amid soaring output.
U.S. West Texas Intermediate crude was down 31 cents, or 0.5 percent, at $62.70 a barrel by 0446 GMT, after falling 90 cents in the previous session. Brent crude was down 40 cents, or 0.6 percent, at $66.23 a barrel. On Tuesday, Brent fell 87 cents to $66.63.
Traders said oil prices declined on concerns of a slowdown in the global economy after China reported on Wednesday that factory growth in February was at its lowest since July 2016.
China is the world’s second-biggest economy and the biggest importer of oil after overtaking the Unites States last year. Crude oil demand is highly correlated to economic growth.
While China’s week-long Lunar New Year holiday this month disrupted business activity, traders also pointed to tougher pollution rules that curtailed factory output.
On the technical charts, WTI crude is trading in the sideways above all the moving averages (9 day, 20 day, 50 day, 100 day, and 200 day). The RSI is at 52.98 and the MACD is above the signal line. the market is expected to trade positive for the day.
Buy stop at 63, Take profit at 63.65, Stop loss at 62.75