Wednesday, September 5, 2018

USOIL - 06 September 2018


Fundamental Highlights

The barrel of West Texas Intermediate extended its losses in the post-settlement trade on Wednesday after the weekly report released by the American Petroleum Institute showed a less than expected draw in the U.S. crude oil inventories. Today also, all eyes will be laying on the EIA Crude oil inventory as they are expected to go down by 2.2 million barrel from last week. Furthermore, OPEC Secretary General Barkindo warned that global trade disputes could hurt energy demand in the future to drag prices even lower. Barkindo further explained that their priority was to keep the oil market stable to allow investors to return.

Technical Analysis

Crude oil prices broke the $68.75 level to the downside forming also a consolidation below it. Currently the price is receiving some support from the $68.50 level but the momentum is still bearish and downward move is more likely to happen as we will be focusing on the 68.20 leve

Support: 65.3 64.6
Resistance: 65.88 68.3

Chart (H1)