WTI crude oil prices slipped for the second day amid rising tensions concerning declined demand for oil after the United States President Donald Trump’s announcement quelled the optimism over the United States and China trade discussions. Ultimately, the remarks have revived concerns about global economic growth.

At the moment, the West Texas Intermediate crude oil has fallen to $56.55, down 40 pips for the day. Trump spoke in a critical tone that he would not agree on a bad deal in the United States and China trade talks.

As we know, the Dragon nation is the largest crude oil importer and second biggest crude oil user in the world, whereas the United States is the largest consumer, so the prices of oil weakens over conflicting remarks from both nations.

WTI crude oil prices surged last week due to drone attacks on Saudi Arabia oil facilities that have destroyed almost half of Saudi’s production and disturbed supplies from the world’s biggest exporter.

US crude stockpiles rose by 1.4 million barrels last week, the American Petroleum Institute announced on Tuesday, versus analysts forecasts of a 200,000-barrel drawdown, which in turn is making crude oil bearish today.

Technically, crude oil is facing bearish pressure below $57 resistance. US Oil has formed “Three Black Crows” candlestick pattern on the 4-hour chart, which is signaling strong bearish bias among sellers.

Crude oil may find next support at $56.25 along with resistance at $57 area. While the violation of $56.25 may extend bearish rally until 55.50 today.

Daily Support and Resistance

S3 53.8
S2 55.53
S1 56.14
Pivot Point 57.26
R1 57.87
R2 59
R3 60.73