WTI Crude Oil Slips Dramatically – Oil Inventories Rose by Six Million Barrels
WTI crude oil prices trade flat despite the increasing crude stockpiles and the escalating United States and China trade tensions. US oil inventories increased sharply last week, according to a private survey from the American Petroleum Institute (API) which released overnight. The API reported that crude inventories rose by about 6 million barrels for the week ended November 15.
We are expecting that the US Energy Information Administration’s weekly inventory data, which is scheduled later in the day, could show a decline of 0.7 million barrels in crude stocks for the week ended November 15.
WTI crude oil prices came under pressure and fell as much as 3% mainly after the US President Donald Trump threatened to increase tariffs on Chinese goods even further if China does not sign a phase one pact.
Additionally, prices edged lower due to the report that said that Russia is unlikely to agree to deeper cuts in oil output at a meeting with fellow exporters next month. However, it could commit to extending existing curbs to support Saudi Arabia.
Daily Support and Resistance
S3 51.79
S2 53.83
S1 54.55
Pivot Point 55.87
R1 56.59
R2 57.91
R3 59.96
Technically, WTI crude oil prices have dropped to 55 support area in the wake of rising crude oil inventories. It’s forming a Doji pattern above 55 area, which may help to boost oil prices until 55.50 and 55.75.
On the lower side, a breakout of 55 support can trigger sell-off until 53.95 level. Let’s look for buying trades above 55 levels and sell below the same to capture quick 50 pips.
Good luck!
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