May 9, 2019, | SQUARED DIRECT - Having failed to hold the previous recovery, WTI now slips to 61.5 level as doubts over the US-China trade deal grew stronger off-late during early Thursday. The energy benchmark benefited from the on-going rift between the US and Iran after the US chose to send its armies to Iran suspecting retaliation by the nation in response to its sanctions. The fight turned tough with the latest sanctions from the US to curb Iran’s metal trading.
On another note, a weekly release of the US stock report from the Energy Information Administration (EIA) marked a surprise drop of -3.963 million barrels versus the forecast of +1.215 million barrels and +9.934 million barrels’ prior. Though, energy buyers couldn’t be lured as the latest statement from the US President Donald Trump offered additional hardships to the already thin chances of a successful deal with China. Investors may now turn to actual results from the meet between the US and Chinese policymakers in Washington in order to determine near-term commodity moves.
Crude oil price technical analysis
After edging a bit higher during yesterday's session, Crude oil price couldn't hold the momentum and instead headed lower to test the $62.50 level again. The price is currently hovering around the 61.55 resistance level with a neutral momentum as the RSI points out.
A move to the downside looks more probable to take place, so the next level we will be watching is the 60.58 support level.
Support: 60.97/ 60.58
Resistance: 61.55/ 61.97
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