Everything You Need to Know About Crude Oil Today - Forex News by FX Leaders

Everything You Need to Know About Crude Oil Today

Posted Wednesday, July 24, 2019 by
Arslan Butt • 1 min read

On Wednesday, WTI crude oil prices pushed higher from 56 to 57.45 in the wake of multiple fundamentals which are bullish in nature. Mounting tensions over Iran, a sharp plunge in US crude inventories, and positive signs on Sino-US trade talks kept impacting the crude oil prices. Although, worries about weak demand kept a cap on gains. Let’s take a look.

API Inventories Report
The American Petroleum Institute (API) reported a large draw in crude oil inventories by 10.961 million barrels for the week ending July 18, versus economist forecast of much smaller 4.01 million draws. This helped support crude oil prices as the API report is positively correlated with the EIA report and draw in API report is spreading sentiments of a further draw in EIA report.

Middle East Tensions
Signs of mounting tensions in the Middle East offset a softer global growth forecast from the International Monetary Fund, which had held WTI crude oil prices largely steady for much of Tuesday’s session.

Even today, black crack is slightly supported with lingering strains between Iran and most of the Western countries over a series of oil tanker attacks. So, these fundamentals are supporting crude oil prices as few investors are looking to sell in the wake of positive sentiments regarding the US-China trade war talks.

Crude Oil – Technical Outlook
Crude oil continues to trade sideways for another trading day as investors seem to face indecision whether to go long or short over mixed fundamentals. Anyway, the 50 and 100 periods moving averages stay around the 58 areas, giving us enough room to complete retracement. On the lower side, crude may find support at 55.50 and 54.75 zones.

WTI Cer

Support Resistance
53.49 59.62
51.11 63.37
44.97 69.5
Key Trading Level: 57.24

WTI Crude Oil – Trading Signal
The idea is to stay bearish below 57.24 with a stop loss above 57.50 and take profit of around 56.60 and 55.75.

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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