WTI oil price stands at the back foot on Thursday and pressures near-term base at $50.60 zone, following Wednesday’s close in red after repeated failure to close above 10SMA ($51.80). Bearish daily studies continue to weigh, with stronger momentum showing little positive impact so far. Also, bears remained unaffected by signals of easing trade tensions between the US and China, while lower than expected draw in oil inventories (EIA report on Wednesday showed 1.2 mln bls draw in crude stocks vs 2.9 mln bls forecast and previous week’s draw of 7.3 mln bls) added to negative signals. The sentiment soured after recovery stalled, with decision of main oil producers to reduce the output by 1.2 mln bps, showed so far little help in attempts to stabilize oil market. Negative signal could be expected on violation of $50.60 base which would open way for renewed attempt below psychological $50 support. Conversely, initial bullish signal could be expected on break above 10SMA ($51.79), with extension above falling 20SMA ($52.48) needed to provide relief and signal fresh attack at pivotal barriers at $54.54 (recovery top) and $54.86 (falling 30SMA).
Res: 51.55, 51.79, 52.48, 52.84
Sup: 50.60, 50.00, 49.40, 49.00
