WTI oil continues trading in the red zone. The decrease in quotations is caused by information that Washington is going to introduce a 25% duty on imported goods from China worth USD 200 billion. Thus, despite attempts by the parties to find a compromise, the trade war continues to gain momentum.
Published EIA Crude Oil Stocks change showed an increase of 3.8 million barrels over the past week, creating additional pressure on the quotes of crude oil. Oil production in the US declined over the past week by 100K barrels per day. As noted by analysts, the decline is a seasonal factor and growth will resume in autumn. Shale production will also continue to grow as long as the exchange rate remains high and the profit exceeds costs.
Yesterday's decision by the Fed to leave the rate unchanged did not actually have an impact on the market, as many participants expected such a result.
Support and resistance
Stochastic is at the level of 15 points and indicates the possible correction.
Resistance levels: 66.55, 67.00.
Support levels: 66.30, 66.00.
Short positions may be opened after the breakdown of the local low at 66.30 with take profit at 66.05 and stop loss at 66.55.
WTI Crude Oil
|Support levels||66.00, 66.30, 66.55, 67.00|
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