WTI Crude Oil Violates Upward Trendline – OPEC Meeting In Focus - Forex News by FX Leaders
Crude Oil - Bearish Breakout

WTI Crude Oil Violates Upward Trendline – OPEC Meeting In Focus

Posted Tuesday, June 5, 2018 by
Arslan Butt • 1 min read

It’s been a volatile session for crude oil as the bearish trend seems unstoppable, with U.S. crude touching its lowest level in nearly two months.  It’s all because of oversupply concerns.

  • Recently, the U.S. output rose to 10.47 million barrels per day  – one of the highest levels till date.
  • The OPEC members are also thinking of increasing the output in order to deal with the potential shortage from Iran. The U.S. is expected to talk about Iran’s nuclear program and may impose renewed sanctions on Iran.

For your information,  Iran is the third-largest oil producer in the Organization of the Petroleum Exporting Countries (OPEC) and the main supplier, particularly to refiners in Asia. Therefore, Asia’s petroleum refiners are struggling to locate alternative supplies in order to cope with the renewed U.S. sanctions against Iran. In order to deal with this situation, OPEC members will be meeting on June 22 to determine the crude oil output.

Crude Oil - Bearish Breakout

Crude oil has finally come out of the bullish trendline support of $65.50 and the next support is likely to be to at $64. Unfortunately, we missed the sell entry as the breakout occurred overnight. But, it will be nice to pocket the retracement above $64 today. Stay in touch for updated forex trading signals.

Support   Resistance

64.56     65.68
64.21     66.03
63.65    66.59

Key Trading Level: 65.12

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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