Having dropped to the lowest since early September, WTI stops further declines as it seesaws near $54.20 earlier this morning. The energy benchmark previously weakened as activity numbers from leading global economies raised questions for future demand. Also adding to the downside is receding geopolitical fears concerning the Middle East. Latest headlines from the Aljazeera quote speaker of the Iranian Parliament who seem to be showing Tehran’s readiness to have a dialogue with Saudi Arabia. Nonetheless, the surprise draw in the weekly oil stocks report by the API to -5.92M from +1.40M, seems to grab markets’ attention amid China’s holidays. The data questions market perception towards the macro impact of Saudi Aramco’s return to normal production. Oil traders will now keep an eye over the EIA’s weekly US crude oil stocks change data while also following trade/political headlines for further direction.
Crude oil prices continued to fall during yesterday’s session printing a low of $53.03 per barrel before they found support at the $53.26 level and bounced back up as of this morning towards the $54.42 resistance level. The price is currently trading just below the $54.42 resistance level as a a divergence between the price and the momentum triggered the recovery. We will keep focusing on the upside with the $55.06 resistance level on our watch.
Support: 53.89/ 53.26
Resistance: 54.42/ 55.06