WTI crude oil prices continued to remain weak. This was initially due to the stronger USD and later followed up by the US announcing new tariffs on Chinese imports. The threat of rising trade wars has dampened the global outlooking, putting downward pressure on the oil markets. Today’s EIA’s report on crude oil inventories will be closely watched. Forecasts show a possible drawdown to the tune of 2.9 million barrels.
WTI Likely to Lose the 54.42 Support
Price action in WTI crude oil currently indicates that oil prices could be turning weaker in the near term. The support level at 54.42 which held up so far is looking to give way to further declines. Today’s EIA inventory could be just the catalyst. A breakdown below the 54.42 support will push oil prices down to the 51.70 level of support next.
