Crude Oil Prices Rolling in Thin Range - Rising US Oil Production Weighs - Forex News by FX Leaders

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

Posted Thursday, January 17, 2019 by
Arslan Butt • 1 min read

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

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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