Brent Crude Oil Calm Ahead of US Oil Rig Count Data
On Wednesday, the crude oil price sharply fell in the global market as data reversal rising inventories in U.S stocks. Things are furthermore intensified as investors due to the ongoing crisis on the U.S tariff on Chinese goods. Brent futures went down by 44 cents and WTI crude suffered a loss of 0.6%.
We might see the bearish correction in crude oil price as the bulls failed to clear the resistance at $59.87. However, a daily closing of the crude oil price above the $59.87 might bring back the bulls. Eventually, the price might head towards the next critical resistance level at $63.38.
On the downside, the crude bears need to break below the support at $58.60. Breaching of that support might push the crude oil price towards the next critical support at $57.81. This level might play a crucial role in determining crude price next move. However, breaching the support at $57.81 might result in a sharp fall towards the support at $56.26. But such an extensive downfall requires a strong fundamental catalyst.
If things settle down between the U.S and China, the energy market might stabilize before the closing of this year. Cautious investors are waiting for Trump’s decision as might change the course of the trend. Considering the technical and fundamental parameters, it’s better to wait in sideline until we get the more favorable market condition.