Traders, the market is mostly pricing in the trade sentiments between China and the US. During the late Asian session, crude oil came under pressure after the API report release. The American Petroleum Institute announced late Tuesday that US crude supplies grew by 3.7 million barrels for the week concluded by August 9.

The API also reportedly revealed a surge in inventory by 3.7 million barrels in gasoline, while distillate stocks decreased by 1.3 million barrels.

EIA Stockpile Report – 14:30 GMT

Inventory data from the Energy Information Administration will be released later today. The EIA figures are expected to show crude inventories down by 2.7 million barrels last week.

Trade War & Tariff Delay

Crude oil gained a bit of bullish momentum after the United States delayed tariffs on some Chinese imports, easing trade war sentiments, although political risks and faltering global growth concerns limited losses for the safe-haven metal. The US President Donald Trump backed off his 1st September deadline for 10% tariffs on leftover Chinese imports, consequently, increasing crude oil demand.

WTI Crude Oil – Technical Outlook

On the technical front, crude oil has tested and failed to cross above the descending trendline which was extending solid resistance around 57.20. Right below the trendline, crude oil has formed a couple of Doji patterns which are suggesting neutral sentiment among traders.

Looks like traders are unable to decide whether to go for selling on bearish API report or to go long on the US-China trade war easing.

Technically, WTI crude oil may find immediate support around 55.55 and 54.40. Whereas, the resistance continues to stay around 57.20, extended by the bearish trendline.

WTI Crude Oil – Technical Levels

Support Resistance

54.75 58

52.82 59.33

49.57 62.59

Key Trading Level: 56.08

WTI Crude Oil – Trade Idea

We have opened a sell position below 56.195 with a stop loss above 56.595 and take profit of around 55.895.

Good luck!