Iraq’s Oil Minister Trying to Keep Oil Traders Buying

Crude Oil has turned quite bearish this month as US WTI crude fell from below $60 to above $50 where it seems to have formed a support zone. The global economy has been weakening which has decreased the demand for Crude Oil and the sentiment has turned negative after the escalation of the trade war, which has hurt the risk sentiment, hence the bearish trend in Crude Oil.

Now, Iraq’s Oil minister is trying to convince himself that the situation is not that bad, because traders are not buying it. Here are some of his comments:

• Fears concerning global economic downturn are “exaggerated”
• Those fears are negatively impacting the oil market
• Global oil demand is currently acceptable, should improve in the coming months

Nonetheless, US Crude Oil has turned bearish again today after the retrace higher at the end of last week. US Crude Oil retraced to $55 last week, but it seems like the previous support has turned into resistance now and WTI crude oil is back to bearish.