Today in the early Asian trading hours, WTI crude oil prices were flashing red and fell sharply to trade around 15 level, as the overall sentiment of oil prices is still bearish mainly due to clear signs of oversupply. The risk of receding demand due to intensifying coronavirus cases and fears of extended lockdowns keep the oil market depressed.

WTI crude oil prices are trading at 15 and consolidating in the rage between 17.35 and 13.20. The International Energy Agency (IAE) warned of a 29 million barrel per day dive in April’s oil demand in its monthly report, levels not seen in over two decades. The crude oil inventories in the US, as per the Energy Information Administration (EIA), surged by 19.2 million barrels last week. This follows the private data, which was published Tuesday by the American Petroleum Institute’s (API), which showed an increase of 13.143 million barrels into the inventories versus the previous addition of 11.938 million barrels.

The global production cut agreement, worth 9.7 million barrels a day, was earlier supposedly lesser than the broad forecasts of 20 million barrels. There are several reasons behind the damaged oil market, not only the supply issue, but the receding demand fears caused by the coronavirus (COVID-19) crisis also weigh on the energy benchmark.

Support Resistance
22.74 27.96
20.8 31.23
15.58 36.45
Pivot Point 26.01

Crude oil prices are supported over 15, while below this level, the next support is likely to be found around 13.20 and 11.75 level. On the higher side, resistance continues to stay at 17.50 and 19.35. Bullish retracement can be seen over 15 support but the overall bias is likely to be bearish, so we should look for selling trades under 17 today. Good luck!