Bearish close for WTI in yesterday’s trading session at $57.33 before printing a high at $57.75 on the back of the American Petroleum Institute crude oil inventory draw of 500,000 barrels vs. a build estimate of 1.649 million barrels and a slowing U.S shale growth supply. This boost to oil prices was short lived as the organization of the Petroleum Exporting Countries lowered it’s demand forecast for 2020 by 1.9 million barrels per day vs. 2019 suggesting that the oversupply will drag on. U.S Baker Hughes rig count to be released today
WTI printed a lower high on a closing basis on the hourly chart, 10 cents below our resistance level (R2) at $57.85 ,and another lower high in early trading today below R1 at $57.21. An hourly close below our uptrend will likely have prices print lower with S1 as our first target,while a hold of the uptrend will help keep bullish momentum.
Support: 56.22 / 55.85 / 55.50
Resistance: 57.21 / 57.85 / 58.25