Earlier today, WTI crude oil fell to $56.60, as fundamentals around the globe continue to weigh on the commodity. Take a look at the key fundamentals which are keeping oil bearish…

Key Bearish Fundamentals

– Portfolio managers have sold the equivalent of 553 million barrels of crude and fuel in the last seven weeks, the largest decline over a similar period since at least 2013.

– US crude oil output has risen by almost 25% this year, to a record 11.7 million barrels per day (bpd).

– The US-China trade war keeps the market uncertain as Trump is looking to hike the 10% tariff to 25% on $200 billion worth products. Which has a very high probability of hurting the Chiese manufacturing sector. No manufacturing means less demand for crude oil. Since China is a top importer of crude oil, this sentiment threatens the crude oil bulls.

For now, all eyes remain on the G20 Buenos Aires summit which is going to be held on Nov 30 – Dec 1. Let’s see if both parties manage to negotiate a win-win deal. If this happens, we may see a bullish reversal in crude oil.

On the daily chart, oil is trading at $56.65 with an immediate support near $55.85. The intra-day resistance can be found at $57.50. The bullish violation of this level can give us further bullish trend until $58.50.

Support Resistance
57.04 57.36
56.93 57.47
56.77 57.63
Key Trading Level: 57.2