Crude oil prices retreat today after Friday’s jump and fourth consecutive positive the previous week after stronger US jobs report for October and of another fall in the number of drilling rigs for oil. Baker Hughes on Friday, reported that the number of rigs drilling for crude oil dropped by 5 to 691, down 183 rigs from the same time last year.
American Petroleum Institute (API) reported the previous week WTI Crude oil stocks at the Cushing, Oklahoma, and delivery hub for WTI crude oil increased by 1.2 mb. 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.
Crude oil breached the 50 and 100-day moving on Friday enhancing the positive momentum. Now on the upside, crude oil first resistance level stands at the daily high at $56.43, while more offers could emerge at $57.18 the 200-day moving average.
On the downside, first support stands at daily low at $55.83, followed by the 50-day moving average at $55.41, below this level, the next support comes in at the lows seen on 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.
Long positions might sit comfortably as long as the crude price trades above the 100-day moving average.Download our latest quarterly market outlookfor our longer-term trade ideas.
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