Bullish Trend in Crude Oil Tends to Fade – is it Filling the Gap?
Arslan Butt • 1 min read
WTI crude oil prices rose due to a drone attack on Saudi Arabian crude oil plants on Saturday, causing an interruption of around 50% of the Kingdom’s crude oil production. Consequently, the West Texas Intermediate (WTI) futures grew by as much as 15.5% to $63.34 a barrel, the biggest intra-day surge since June 22, 1998.
Fellas, as you know Saudi Arabia is one of the biggest WTI crude oil producer and the drone attack on state-owned producer Saudi Aramco’s crude processing facilities at Abqaiq and Khurais has cut the WTI crude oil inventories by 5.7 million barrels pr day. What’s worse is, the company still didn’t give any schedule to the resumption of losses.
Technically, crude oil has a huge gap to fill and it takes oil prices to drop from 59.40 to 55 zone to fill the gap. I’m not expecting crude oil to fall that much today, but in the coming days that’s the most likely scenario.
Daily Support and Resistance
Pivot Point 54.93
WTI Crude Oil – Trade Plan
I will be looking to stay bearish below 60 area and bullish above 58.50 area today as crude oil may start trading choppy until we have more updates on this matter.