West Texas Intermediate crude prices are under pressure following the loss of the $54 handle yesterday as the supply side case gathers pace. The focus is on supply and demand and with the second volume of the trade war negotiation saga kicking off this week as Chinese and US trade negotiators are set to meet. The sentiment has turned sour again while the US administration tightens the screw heading into the talks. The US was announcing the blacklisting of Chinese technology firms, by citing human rights violations against minorities as a reason for the ban - Not a good welcome mat for the Chinese delegation arriving later this week, who incidentally, have been reported by The Global Times to be cutting the visit short by a day.
Crude oil prices face pressure again as they dipped below the $53.89 support level to retest this week’s lows near the $51.83 level which once again provided the right support. The price is currently hovering around the $52.5 resistance level with a bearish momentum. We will be focusing on the downside with the $51.83 support level on our watch.
Support: 51.83/ 50.87
Resistance: 52.5/ 53.26