With the doubts over energy demand and the market’s caution ahead of the key data and event challenging private inventory data, WTI declines this morning. Prices slipped during yesterday’s session after doubts over the US-China meeting in Chile were resurfaced by Reuters. The reasons spotted include geopolitical tension and fire. Though, the losses were limited by the weekly Crude Oil Stock report from the American Petroleum Institute survey. The report said that the inventory figure for the week ended on October 25 dropped from 4.45 million barrels to 0.592 million barrels. However, buyers fail to return as China’s objection to the United States’ stand on Xinjiang adds uncertainty to the US-China trade deal. Further, the US House of Representatives recently backed legislation to levy harsh sanctions on Turkey over its offensive in Syria, which in turn added weigh to the market’s risk-tone.
Crude oil prices lost traction on Tuesday, breaking to the downside after printing a high of $56.89 per barrel and still facing pressure this morning . The price is currently trading just below the $55.5 level with the momentum refraining towards the bearish territory after breaking the trend line presented on the RSI chart to the downside. We will be focusing on the downside, especially on the $55.06 support level.
Support: 55.05/ 54.42
Resistance: 55.92/ 56.27