Crude oil prices trading slightly lower today giving up 0.39% at $56.58 after President Trump failed to inspire investors after mixed comments; President said that China-US trade deal might happen soon and the phase one agreement is close, but he also said that if a deal isn’t reached the US will raise tariffs.
The previous week the EIA reported that supplies of natural gas rose by 34 billion cubic feet for the week ended November 1, against 89 billion cubic feet gains last week. That came below the build of 45 billion cubic feet expected.
EIA reported last week an increase in inventories by 1.6Mbpd after the previous week’s increase of 8 Mbpd. IEA forecasts that global oil demand growth is expected to grow by 1Mbpd on average to 2025 but is forecast to slow to an average of 100,000 bpd a year from then on as more electric cars hit the road
Support to crude coming from reports indicating that OPEC+ producers might consider production cuts in their next meeting in December.
Crude Oil Price Technical Levels
Crude oil rejected yesterday for one more time at the 200-day moving average rejected for the seventh consecutive session so bears now look more aggressive.
On the downside, immediate support stands at daily low at $56.50, followed by the 100-day moving average at $56.01, below that level, the next support comes in at 55.66 the 50-day moving average. Crude oil has established strong support at 50.50 which managed to cancel the bears several times since the beginning of 2019.
On the flip side, crude oil first resistance level stands at the daily high at $56.80, while more offers could emerge at $57.32 strong resistance, the 200-day moving average. Long positions could sit comfortably as long as the crude price trades above the 100-day moving average.