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Crude Oil Prices Looking For Direction as Bears Control the Game

crude oil prices
crude oil prices

WTI Crude oil prices started the week 0.04% higher at $53.89 per barrel, as crude oil prices search for equilibrium after the dismal macro data from the US that increased investors fears about global slowdown. International Monetary Fund cut it’s global economic growth to 3% the lowest growth rate since the financial crisis in 2008. The American Petroleum Institute (API) last week estimated a major crude oil inventory build of 10.45mbs for the week ending October 10 topping analyst’s expectations of 2.878-million-barrel. The crude oil prices rebound from the August 7th lows at $50.74 up to $63.30 amid the attacks. However, as the oil supply from Saudi Arabia has been restored, the oil price has traded back to the levels seen before the attacks.

Crude oil price failed to hold the gains after recent spikes on increasing tensions in the Middle East. Oil traders focus on crude fundamentals and ignore the new point of geo tensions in the East.

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WTI Crude Oil Support and Resistance Levels

On the technical side, the momentum is bearish for crude oil prices, as the oil price trades below all the major daily moving averages. On the downside, immediate support stands at daily low of $53.45, followed by the October 19th lows at $51. If the price closes convincingly below October low, it will pave the way for a move down to YTD lows at $45. On the upside, crude immediate resistance level stands at the daily high at 53.92, while more offers could emerge at 55.37 the 50-day moving average. Next barrier is the 100-day moving average at $55.60. Short positions in crude oil probably look safe as long as the price hovers below $54.00. Overall, the bears are in control despite the geopilitial tensions, and any move higher will probably be considered as a selling opportunity.