Crude oil prices rebounded after early weakness but still settled lower on Thursday, amid renewed concerns about excess supply and a likely drop in near term energy demand. Despite OPEC-led production cuts, concerns over excess supply in the market remains. Moreover, with US-China trade tensions resurfacing again and the Chinese economy not showing any great signs of staging a significant recovery anytime soon, oil prices are unlikely to see a sustained rally.
Crude runs into sellers again around 52.85 for the third day in a row, finishing the day slightly lower at 52.48 and closing within the prior day's range. Although Oil is experiencing a short-term uptrend, this might just be a correction, as the long-term trend is still bearish. Prices continued to consolidate within a tight trading range between 50.65 and 53.58 where it has been stuck now for the last week. In a volatile session Thursday, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. Selling could accelerate should prices move below the nearby swing low at 50.65 where further sell stops might get triggered.
Support: 50.60 49.80
Resistance: 52.85 53.58