WTI oil price bounced from temporary base at $50.60 zone (lows of past three days) where pullback from recovery high at $54.54 found footstep. Oil came under pressure after recovery attempts stalled and subsequent easing was boosted by fears that agreed production cut by OPEC and other main producers outside the cartel, will not be enough to stabilize oil market, depressed by rising signs of oversupply and lower demand. Shutdown of main Libya’s oilfields provide some support and sidelined immediate downside risk, but overall sentiment is still weak and along with bearish daily techs, keeping near-term bias negative. Recovery attempts struggle at 10SMA ($51.72) and repeated daily close below would keep the downside vulnerable of potential retest of psychological $50 support. Sustained break here after short-lived spike to $49.40 (29 Nov) would signal continuation of larger downtrend. Conversely, lift above falling 20SMA ($53.02) would provide relief and open way for test of recent spikes at $54.50 zone, but extension and close above falling 30SMA ($55.74) would generate stronger bullish signal. US API and EIA crude stocks reports, due late today and on Wednesday are in focus and expected to provide fresh signals.
Res: 52.78; 53.02; 54.54; 55.74
Sup: 50.60; 50.00; 49.40; 49.40
