Crude oil prices retreat today after yesterday’s jump to monthly highs after conflicting headlines on the trade talk progress between China and US. The EIA yesterday reported that supplies of natural gas rose by 34 billion cubic feet for the week ended November 1st against 89 billion cubic feet gains last week. That came below the build of 45 billion cubic feet expected. Investors are now waiting for U.S. consumer confidence and Baker Hughes US Oil Rig Count later today that might provide fresh catalyst to oil prices.
Baker Hughes, last 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.
Crude oil stalled yesterday below the 200-day moving average rejected at that level for the fifth consecutive day. On the upside, crude oil first resistance level stands at the daily high at $57.13, while more offers could emerge at $57.26 the 200-day moving average.
On the downside, first support stands at daily low at $56.49, followed by the 100-day moving average at $56.02, below this level, the next support comes in at 55.54 the 50-day moving average. WTI Crude oil 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.More content