Crude oil prices started the week under pressure after the uninspiring data from China reminded investors of the potential negative impact of an economic slowdown in China over the global energy demand. Additionally, easing tensions in the Middle East suggested that the supply disruptions are unlikely to ramp up prices. Moreover, Ibrahim Al-Buainain, Saudi Aramco's chief executive officer of its trading arm, during a conference announced that Aramco had restored full oil capacity following the attacks on its oil facilities earlier this month. Meanwhile, according to the Interfax news agency, Russian Energy Minister Alexander Novak today said that Russia's September oil output reduction totalled 200K barrels per day as part of the OPEC+ output deal to help crude oil prices limit their losses for the time being.
Crude oil prices went lower by nearly 3% during yesterday’s session printing a low of $53.97 after breaking below the trend line presented on the chart. The price is currently hovering around the $54.42 support level with a bearish momentum and more room to go before entering the oversold zone. We will be focusing on the downside with the $53.26 support level on our watch.
Support: 53.89/ 53.26
Resistance: 54.42/ 55.06