WTI prices declined during yesterday’s session with renewed optimism that Saudi Arabia is making progress in restoring production. The black gold witnessed extended downside pressure after the the private oil inventory survey of the American Petroleum Institute showed that the US Crude Oil Stock rose to 1.400M barrels versus 0.592M barrels prior during the week ended on September 20. Energy traders shrugged off the latest worries concerning China’s economic growth while also ignoring comments from the dragon nation’s Foreign Minister Wang Yi that may cause harm to already dwindling relations between the US and China. Looking forward, trade/political headlines will keep dominating market sentiment whereas weekly official stockpile data from the US Energy Information Administration for the week ended on September 20 will be followed as well.
Crude oil prices extended their losses during yesterday’s session, declining by more than 2% after two sessions of tight range trading. The price is currently trading just above the 56.79 support level with the momentum being negative and very close to enter the oversold zone. We will be focusing further on the downside with the 55.92 support level on our watch.
Support: 56.79/ 56.27
Resistance: 57.4/ 57.81