NYMEX WTI Futures for June drops below $19.00
while heading into the European session open on Friday. In doing so, the black gold trims the early-Asian session gains to sub-1.0% as traders turn risk-averse due to the latest US-China tussle. However, the global oil production cut gets activated today and is likely to have stopped the energy benchmark’s drop.
Also questioning the oil price declines could be the open interest and volume details for Thursday from the CME. The figures suggest a hike in open interest by 27.4K contracts with a surge in volume by around 156.4K contracts. While April 23 high near $18.30 acts as the immediate support, sellers might want to confirm the downside with a clear break below the three-day-old rising trend line, currently around $17.80, to aim for $16.50 and $14.00 during the further downside. It should be noted that any further declines below $14.00 will be the call for $10.00 to return to the charts. On the upside, April 21 high near $22.60 is the immediate resistance to watch beyond $20.00.