Crude Oil Prices Rolling in Thin Range – Rising US Oil Production Weighs

On Thursday, the WTI Oil prices traded in a slightly bearish tone as the US Oil production reached highest levels of 12 million barrels per day (bpd). The rise in crude oil price is essentially due to crippling demand, especially in light of the trade spat between the United States and China.

Oil Production – United States

Lately, the crude oil output touched roofs which are near a record 12 million bpd in early January. Global economic concerns are fueling some of the concern among investors and traders that growth in global supply this year will outpace demand.

Technical Outlook

Technically, WTI crude oil seems to be bearish falling below $51.47, a major resistance level. Moreover, WTI is trading in overbought territory and needs to retrace back before further buying. The RSI has also crossed below 50, demonstrating a bearish tone.

However, based upon technicals, I would recommend investors to have their sell positions below $52.10, along with an initial take profit at $51 and second take profit at $50.50 while keeping the stops above $53.40.

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.
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