While WTI crude oil price may be trading lower in today’s trading, the commodity is testing its trendline support which could indicate that it may soon trade higher. As of this writing, WTI crude oil price is trading at $40.31, down from its opening price at $40.53. Could the recent data on China’s oil imports push the commodity higher?
According to think tank OilX Research, the country imported 11.93 barrels of oil per day last month. This translated to an increase of 820,000 barrels per day compared to May. On an annualized basis, this also marks a 25.4% uptick. The main driver behind this surge in oil consumption in China is said to be the country’s return to normalcy as the economy is being slowly reopened.
Technical Analysis
On the 1-hour time frame, it can be seen that WTI crude oil price is currently testing support at the rising trendline when you connect the lows of June 30, July 1, July 2, July 3, and July 6. Reversal candlesticks around this price could mean that we may soon see the commodity trade higher. Near-term resistance would be around $40.98 where crude oil price topped on July 6. If resistance at this level does not hold, the next ceiling could be at $41.41 where the commodity topped on June 23.
On the other hand, a strong close below today’s Asian session low at $40.27 may mean that there are still sellers left in the market. The commodity could soon then drop to its July 3 lows around $39.72. If support at this price does not hold, the next support levels could be at $38.70 where WTI crude oil price bottomed on June 30.
WTI Crude Oil Price, 1-Hour Chart
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