Bullish Trend in Crude Oil Tends to Fade – is it Filling the Gap? - Forex News by FX Leaders

Bullish Trend in Crude Oil Tends to Fade – is it Filling the Gap?

Posted Monday, September 16, 2019 by
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
S3 52.48
S2 53.71
S1 54.25
Pivot Point 54.93
R1 55.47
R2 56.16
R3 57.39

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.

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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