Crude oil prices gained traction initially during yesterday’s session amid easing worries over the potential negative impact of a protracted US-China trade dispute on the energy demand outlook, but eventually, failed to convince on upside attempts. The FOMC minutes had impact on prices which essentially reiterated Fed governor Powell's recent bullish comments with respect to the US economic outlook, sending back oil below the $53 level. Moreover yesterday, the Energy Information Administration reported that US crude supplies had climbed for a fourth week in a row by 2.9 million barrels.
Crude oil prices failed to maintain its uptick during yesterday’s session after printing a high of $53.72 per barrel, and instead retreated below the $52 handle. The price is currently hovering around the $52.5 resistance level with the momentum getting more neutral. We will be focusing on the downside as we will be expecting a big move. The next level to watch will be the $50.87 support level.
Support: 51.83/ 50.87
Resistance: 52.5/ 53.26