WTI struggles beyond $59 handle on demand concerns

• WTI has not been able to follow through on the bid due to demand concerns.
• Sino/US standoff trade fuels demand concerns and cap oil's rally. 

The price of a barrel of oil has been in decline on Monday, with West Texas Intermediate currently heading into the Wall Street close off its worst levels, -0.17%, having fallen from a high of $59.22 (highest since September) to a low of $58.21. 

Last week's Nonfarm Payrolls had helped to lift investor spirits last week which inturn fuelled demand for the black gold which had already lured in speculative bids following the Organization of the Petroleum Exporting Countries and major allies (OPEC+) in their accord for production cuts. OPEC+ agreed to officially cut production by 500,000 barrels a day on top of its current reduction agreement, starting in January. 

"Saudi Arabia's voluntary 400k bpd additional cut will bring the group's production lower than previously anticipated should cartel members stick to their quotas," analysts at TD Securities explained, adding:

"In this context, we expect some modest upside flow from CTAs in WTI and Brent crude which could provide further support to the recent rally in the very near-term."

China remains an economic concern

However, there remain concerns about the global economy and the weekend's data out of China was a stark reminder. Chinese exports were off 1.1% from a year earlier at $221.7 billion, hurt by the 18-month Sino/US trade tariff standoff. In this respect, this week will be crucial as to whether or not a phase-one deal can be inked prior to a December 15 deadline that will see annual tariffs on $156 billion in China goods raised to 15%.

WTI levels