- Summary:
- WTI crude oil price stagnates below the $55.50 mark as concerns over the global economy and possible drop in global demand continue to spook markets.
The WTI crude oil futures pushed up from yesterday’s identified support levels to hit its highest level in 5 days at 55.28, but has since retraced into a consolidation range between the central pivot at 54.46 and the R1 pivot at 55.40. The risk-off sentiment continued to play a big part in limiting any crude upsides, with today’s very poor German ZEW data and the US-China trade war continuing to generate concerns over global growth. These factors continue to spook risky assets such as crude and other commodities.
Tomorrow’s EIA Crude Oil Inventories data is expected by polled analysts to show a rise in shale oil production by about 85,000 barrels per day, sending production from this source to record levels. If the results are in line with expectations, crude oil may yet tick lower.
Technical Play for WTI Crude
Crude is presently trading within the range that has been identified above, and is looking for a fresh catalyst for some direction. The crude oil inventories report may provide impetus. Until then, 54.46 and 55.40 remain the downside and upside boundaries to price action.
A breach of 54.46 support and continued downside momentum will open the door for a renewed test of 53.80, 52.85 and 52.19.
On the flip side, an upside break of 55.40 will see crude oil retesting the 56.07 and 57.02 price areas.