Crude Oil Slipped Below $55 – Weak Demand & Oversupply Plays - Forex News by FX Leaders

Crude Oil Slipped Below $55 – Weak Demand & Oversupply Plays

Posted Wednesday, November 14, 2018 by
Arslan Butt • 1 min read

WTI crude oil continues to extend its steep dive on the back of worries about fading world demand and oversupply. Meanwhile, global shares declined as the energy sector lacks confidence due to a slow down in the global economy.

Investors seem to wait for the US API reports later today but considering the trade war between China and the US, we can expect a build in inventories. On the other hand, the US has exempted eight countries from Iran’s sanctions list.

The dollar-denominated commodity is also under pressure due to a stronger dollar and the chances that the dollar will continue to get stronger over interest rate hike sentiments.

Support Resistance
53.73 58.31
52.03 61.19
47.44 65.78
Key Trading Level: 56.61

WTI Crude Oil – Trading Plan

The idea is to stay bullish only above $55.45, perhaps, you can set a buy stop to target 60/80 pips with a stop below $55.10.

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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