get_geodata_regions(); Crude Oil Under Pressure as Trump Plays Down Tariff Reversals - Forex News by FX Leaders

Crude Oil Under Pressure as Trump Plays Down Tariff Reversals

Posted Tuesday, November 12, 2019 by
Arslan Butt • 2 min read

WTI Crude oil prices are flashing red and dropp for the second straight day as everyone focuses on recent trade-related headlines from the US and China, even as higher Saudi Arabian crude inventories strengthened concerns about oversupply. West Texas Intermediate (WTI) crude was down 18 cents, or 0.3%, at $56.68 a barrel. Besides its price has dropped 0.7% in the previous session.

Concerns regarding the impact on WTI crude oil demand from the result of the 16-month United States and China trade war still reign, which has caused weakness in global economic growth as well.

The United States President Donald Trump said on Saturday that the discussions with China were going nicely, but the United States would be only interested in the deal if it was suitable for Washington.

At the supply front, Saudi Arabia increased its oil output in October to 10.3 million barrels per day (bpd), although it kept its supplies to oil markets below the OPEC output target.

The Organization of the Petroleum Exporting Countries and partners, a group known as OPEC+, will likely sign a deal to limit crude supply but are unlikely to deepen their cuts, as reported by Oman’s energy minister.

Trump is scheduled to speak at the Economic Club of New York on Tuesday, where he will likely give some details on the ongoing trade war and will probably give hints to when the deal could be signed.

WTI Crude Oil – Trade Idea

Technically, crude oil is trading sideways around $56.85 area, having a solid resistance at $57.25. A bullish breakout of $57.20 is likely to lead crude oil prices towards $57.75.

The 50 periods EMA is supporting the black crack around $56.60 and closing of candles above this level can keep oil bullish. The API report is due later in the US session and we may see some price action on the news release.


Daily Support and Resistance
S3 53.5
S2 55.2
S1 56.33
Pivot Point 56.9
R1 58.03
R2 58.6
R3 60.3

I would consider taking a sell position below 57.20 and a buy position above 56.60 today.

Good luck!

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Related Articles
Comments
0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments