WTI in red on US dollar, China

[John Starks]

The price of the barrel of the American benchmark for the light crude oil is trading lower on Tuesday, following some strength in the greenback and the effects of a probable slowdown in the Chinese economy, the world’s second oil consumer. According to data, demand for crude oil in China has dropped to the lowest level since November 2011, to 9.51 million barrels/day in March.

It is worth noting that despite yesterday’s improvement in the HSBC flash manufacturing PMI in China, the value still remains under the 50 threshold, indicative of contraction.

As of writing, WTI is down 0.11% at $103.01

Next support levels lie at 102.01 followed by 100.88 and then 99.92, while resistance levels are located at 104.09 ahead of 105.04 and finally 106.17.