Everything You Need to Know About Crude Oil Today
Arslan Butt • 1 min read
WTI crude oil prices surged on Thursday over an unexpected drop in US crude oil inventories. As per the API report, the US crude inventories dropped by 5.3 million barrels in the week of May 24 to 474.4 million barrels. The drop was more significant than the forecast of 900k barrels.
At the moment, Crude Oil is trading at 59.30, falling over 0.69% in the past couple of hours. The focus also stays on the GDP figure, which is due to come out during the US session as it may indicate robustness or weakness in the US economic growth. Crude oil may surge over sentiments that the world’s largest crude oil consumer may demand more crude oil. This increased demand results in increased prices.
Additionally, WTI crude oil remains supported by production cuts from the Organization of the Petroleum Exporting Countries (OPEC) along with falling supplies from Iran.
WTI Crude Oil – Technical Outlook
Taking a look at the hourly chart, WTI is floating below 59.55, the 38.2% Fibonacci resistance level. At the same time, the leading indicators are stuck in the oversold zone, suggesting the potential for a bearish reversal.
200 periods EMA is suggesting bearish trend along with providing resistance at $60.50. While 50 periods EMA is likely to support the pair around $58.90.
WTI Crude Oil – Trade Idea
The idea is to stay bearish below 59.40 with a stop loss over 59.70 and take profit of around 58.50 and 58.