WTI crude oil prices dropped due to ongoing concerns about the global economic outlook and the result on oil demand, and also because Russia again missed its cut in oil inventories last month.

US West Texas Intermediate crude oil futures (CLc1) declined 10 cents, or 0.2%, to $53.68 a barrel.

Friday’s data showed that China’s GDP growth slowed to 6% year on year in the 3rd-quarter of 2019, against forecast of 6.1%.

Moreover, Russia announced that it produced more than expected oil during the month of September due to an increase in gas condensate output as the country prepared for winter.

The Organization of the Petroleum Exporting Countries (OPEC), Russia and other oil producers, an alliance known as OPEC+, had accepted back in December 2018 to decrease supply by 1.2 million barrels per day (bpd) from the start of this year.

At the Sino-US front, the uncertainties decreased slightly between the United States and China after China’s Vice Premier Liu He said that they are on the development track to complete the phase one agreement.

Meanwhile, OPEC members Kuwait and Saudi Arabia held discussions regarding restarting crude oil production from joint fields in the neutral zone between the two countries, with the capacity of 500,000 barrels per day, which could possibly bring more supply to the market.

WTI Crude Oil – Technical Outlook

On the technical side, crude oil has come out of the narrow trading range of 53.70 – 52.50. Closing of Doji candle outside this range is confirming the bullish breakout on a 4-hour chart.

At the same time, crude oil has also crossed over 50 periods EMA, which is signaling chances of further buying in the WTI.

On the upper side, crude may find the next resistance at 54.90 while support stays at 53.60.

Daily Support and Resistance
S3 50.56
S2 52.09
S1 53.01
Pivot Point 53.63
R1 54.54
R2 55.16
R3 56.69

WTI Crude Oil – Forex Trading Signal
The idea is to stay bearish below 53.65 with a stop loss below 53.95 and take profit at 52.75.

Good luck!