Forex Marketz Daily Forex News – Fully Markets Update
Crude oil prices, including US WTI light sweet crude, fell lower this morning during Asian trade hours. Chinese data showed that said oil refining, in the world’s second largest economy, has dropped 4.4 percent in July. This marked the largest decline since 2014. US data, released this week, showed that the EIA projected that US shale production will hit an all time high of 6.15 million barrels per day by September.
There are some signs of ebbing demand from the world’s largest oil consumer, China, and increasing output from its most significant swing supplier the United States, has seemed to dent OPEC’s prospects for reducing the global supply glut.
On the economic calendar for oil traders is the weekly release Of the API inventory flow figures. Investors are likely to wait on this print for direction. The official EIA statistics, due Wednesday, for context, are expected to show a 3.5 million barrel drawdown.
Crude Oil Technical Analysis
Let’s look at today’s daily technical analysis. Price action has seemingly broken through the rising trend line for June’s sig low. This suggests that the two month uptrend for the black gold has ended.
Next, a daily close below the next downside barrier that lines up at $47.30 per barrel will challenge the next support level lining up at 45.40. The alternative technical analysis notes the first upside barrier lining up at $48.50 per ounce. The next upside layer lines up at the August 1 price point high near $50.40 per barrel.
