Crude oil prices trade lower for fourth consecutive trading session giving up 0.10% at $54.20 per barrel, pressured by concerns of weak global demand and as investors keep a wait and see stance after reports that China’s officials have doubts over prospects for a trade deal. American Petroleum Institute (API) reported this week WTI Crude oil stocks at the Cushing, Oklahoma, and delivery hub for WTI crude oil increased by 1.2 mb. Crude oil traders await the Baker Hughes US Oil Rig Count due at 17:00GMT. Saudi Arabia crude production jumped to 9.90 mb per day against 9.05 mb per day in previous month, while Iran’s crude production dropped to 2.05 mb per day from 2.07 mb per day in previous week.
Many oil analysts expect WTI crude oil to remain under selling pressure in the short term due to weak global oil demand on the back of global growth fears, US-China trade tensions and a stronger US dollar.
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WTI Crude Oil Support and Resistance Levels
Crude oil continues for third day below the 50-day moving average that provided some support but now the bears are in control of crude oil prices. On the downside, first support stands at daily low at $54.07, followed by October 23rd lows at $53.71. Crude has established a strong support at 50.50 which managed to cancel the bears several times since the beginning of 2019.
Now on the upside, crude oil first resistance level stands at the daily high at $54.48, while more offers could emerge at $55.33 the 50-day moving average; next hurdle stands at $56.85 the high from October 28th before an attempt to 200-day moving average at $57.15.
Short positions might sit comfortably as long as the crude price trades below the 50-day moving average.Download our latest quarterly market outlook for our longer-term trade ideas.
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