Crude Oil’s Bearish Momentum Continues – Investors Fear Oversupply

Arslan Butt•Thursday, December 20, 2018•1 min read

Fellas, the WTI crude oil prices continue to trade with a bearish momentum, heading back towards $45.75, the lowest levels in more than a year. Most of the bearish bias has been triggered over investors’ worries about oversupply, and the outlook for energy demand remains vulnerable.

Organization of the Petroleum Exporting Countries (OPEC) and other oil producers including Russia decided this month to curb output by 1.2 million barrels per day (bpd) in an effort to reduce containers and boost prices. But the strategy doesn’t seem to work.

Anyhow, the technical side of crude oil is also exhibiting a strong bearish trend. For instance, the WTI has slipped below an intraday support area of $47.50 and next support is likely to be $45.95.

Here’s the thing – crude oil can stay bullish above $45.95 while the bearish breakout of this level can cause further sell-off until $44.50.

Good luck!

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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.