Crude Oil Trades Under $70 As Saudi Arabia Plans to Increase Output! - Forex News by FX Leaders

Crude Oil Trades Under $70 As Saudi Arabia Plans to Increase Output!

Posted Monday, October 22, 2018 by
Arslan Butt • 1 min read

The WTI crude oil rose higher to test $69.85 but failed to break above this level. It’s mostly due to the fact the demand for crude oil has dropped over the US-China trade war.

Today, the oil prices got boosted by nervousness over a worsening diplomatic crisis between Saudi Arabia and the West, just two weeks before US sanctions likely drown off Iranian crude supplies.

In addition to this, the US sanctions on Iran’s oil sector start on November 4 and as per the market sentiment, up to 1.5 million bpd in supply could be at risk. As a result, crude oil may show an additional buying in upcoming days.

At the moment, crude can find support at $69 and $68.85, while the resistance prevails at $69.35 and $69.75. As per Stochastic and RSI, crude oil is holding in a selling zone which may cause further selling until $68.75 today.

Support Resistance
68.81 70.08
68.08 70.62
66.81 71.89
Key Trading Level: 69.35

Crude Oil – Trading Plan
Traders, today we need to stay bearish below $69.35 with a stop above $69.65 and a take profit near $69 and $68.75. Good luck!

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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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