WTI benefits from USD weakness, trade/political news in the spotlight

• Greenback weakness, negatives for Saudi Arabia and IMF leader’s statements triggered a recent pullback.
• $50.50 – $50.00 acts as strong downside support to watch.

Having slumped to the lowest since mid-January, WTI recovers some of its latest losses to trade around $51.80 while heading into the Europe markets’ open on Thursday.

While the US Dollar (USD) weakness, which has a negative correlation with the commodity basket, is likely the main reason behind the black gold’s recent up-moves, positive comments relating to the global growth from the International Monetary Fund’s (IMF) leader Christine Lagarde also played its part in calling buyers back at home.

Additionally, CNN news that China helping Saudi Arabia build missiles might also lure some crude bulls as the US might not like the OPEC leader’s alliance with its present arch rival, China.

The energy benchmark has been on a downturn off-late because the US-led trade tensions join increasing inventory levels.

Looking forward, the final decision on another chapter of global trade wars, between the US and Mexico, will be closely followed during the day as lawmakers of both the economies are to meet for one more time before the fresh tariffs levy on Mexican products.

Also on the investors’ radar will be developments surrounding the US-China relations that has gone sour during recently.

Technical Analysis

$50.50 - $50.00 area comprising multiple lows marked since November 2018 presently challenges the bears, a break of which can might not hesitate recalling $48.50 and $47.30 back to the chart.

Meanwhile, $53.50, $54.60 and $56.50 can entertain short-term buyers ahead of pushing them in the direction to March month tops near $57.90 - $58.00.