Sharp drop in crude oil – China shifts to Iran for oil supplies! - Forex News by FX Leaders

Sharp drop in crude oil – China shifts to Iran for oil supplies!

Posted Tuesday, August 21, 2018 by
Arslan Butt • 1 min read

Crude oil is trading sharply bearish today and has already dropped more than 100 pips over technical and fundamental reasons. Let’s look at them:

1) We are already aware of the ongoing trade war between China and the US, due to which Chinese buyers of Iranian oil are beginning to move their cargoes to vessels owned by National Iranian Tanker Co (NITC) for almost all of their imports to keep the supply flowing. Despite the recent sanctions on Iran by the US and Eurozone, China seems to buy oil from Iranian companies to meet its oil demands.

Crude Oil - Daily Chart

Crude Oil – Daily Chart

2) Secondly, if you look at the daily chart of crude oil, you will notice it has tested the long-term upward trendline which was earlier violated at $66.35. Now the same support level is working as a resistance. Crude oil can face an immediate resistance near $65.20 and $64.67. Whereas, the bearish trend remains strong.

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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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