WTI loses momentum beyond $57.00

• WTI fades the earlier uptick to levels above the $57.00 mark/bbl.
• EIA reported a nearly 1.1M barrel drop during last week.
• Focus remains on US-China trade dispute.

The barrel of the American benchmark for the sweet light crude oil is trading on the defensive so far today, shedding ground after testing daily tops near $57.30 during early trade.

WTI concerned over crude oil demand

Prices of the West Texas Intermediate are fading part of yesterday’s recovery from lows in the boundaries of the $56.00 mark per barrel, as traders remain concerned over the US-China protracted trade spat and the absence of signs of a stronger demand.

In fact, the EIA reported on Wednesday an almost 1.1M barrel decrease during last week. The reading came in below expectations despite the US driving season has already kicked in.

Also weighing on sentiment, and despite the recently agreed truce, traders remain quite sceptical over the resumption of the negotiations between US and China in the near term, let alone a definitive deal any time soon.

WTI significant levels

At the moment the barrel of WTI is retreating 0.81% at $56.81 and faces the immediate support at $55.91 (low Jul.3) seconded by $55.48 (21-day SMA) and finally $50.54 (monthly low Jun.5). On the flip side, a break above %58.23 (200-day SMA) would aim for $60.12 (monthly high Jul.1) and then $60.73 (23.6% Fibo of the December-April rally).