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

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


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!

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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