US crude oil barrels are trading just above 57.00 in the early week’s action, trading tightly within last Friday’s high/low range. What next can traders expect? Gain insight into the following technical forecast.
November 19, OctaFX – The price of crude oil jumped by more than 1% today as traders expected Saudi Arabia to continue with its campaign of supply reduction. Last week, Saudi’s oil minister said that his country will reduce supplies by more than 500K barrels in December.
After the comment, OPEC released its monthly report that predicted an oversupply and weaker demand in the coming year.
CIA Concludes Saudi Crown Prince Ordered Khashoggi Killing
Even with today’s upward movement – which was likely driven by the news that Saudi Crown Prince, Mohammed bin Salman, ordered the killing of journalist Khashoggi – prices remained at significant lows.
The Central Intelligence Agency (CIA)’s conclusion that Mr. Khashoggi was murdered is likely to put more pressure on the Trump administration to sanction the country.
Crude Oil Technical Analysis
The price of WTI crude oil rose from Friday’s close of 56 to an intraday high of 57.53. This upward trend halted the sharp decline experienced last week. The RSI has moved from around 30 to the current 47 on the four-hour chart.
The current price is a continuation of a consolidation that started on Thursday last week. At this point, the pair could continue the previous decline or start a strong upward trend.
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