Bears Dominate WTI Crude Oil – Saudi Arabia to Play the Responsible Role - Forex News by FX Leaders

Bears Dominate WTI Crude Oil – Saudi Arabia to Play the Responsible Role

Posted Tuesday, October 23, 2018 by
Arslan Butt • 1 min read

The WTI crude oil dipped more than 140 pips on Tuesday after Saudi Arabia announced it would perform a “responsible role” in energy markets. Saudi Arabia says that it will keep markets supplied despite its booming insulation over the murder of Saudi journalist Jamal Khashoggi, and there are indications that crude shipping from the Middle East is growing.

As we know, the US sanctions on Iran’s crude exports begin next month which are making crude oil bullish. But lately, the intervention of Saudi Arabia and the US-China trade war has placed immense pressure on crude oil prices.

Technically, the black crack managed to break below a triple bottom support level of $68.50. Oil was stuck in a sideways range of $68.50 – $69.75, which has finally been violated. We may see a continuation of bearish momentum until $67.75 or even below.

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

WTI Crude Oil- Trade Plan
Fellas, the idea is to keep a close eye on $68.50 as crude oil can stay bearish below this level until $67.75. 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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