The picture is not promising for Crude Oil Bulls.
The main problem is the Global Oil Demand.
Geopolitical risks and OPEC+ Supply Cut can not help oil prices because there is a lack of demand.
IMF lowered the Global Growth projections. IEA reduces its Oil Demand Growth projections.
In the near term, geopolitical risks can be the only reason for the bullish market. Saudi Arabia needs higher prices for Aramco’s IPO. But if there is no demand, cutting the supply could only a temporary solution which is not sustainable.
Technically:
Near-term selling pressure remains as long as the prices stay below 58 $. Only a firm closing above 58 $ may change the near term overview and we may see the prices testing 59.40 $ – 60.00 $.
On the downside, we have two target levels: 55.40 $ and 54.70 $
Breakout of 54.70 will add weight on the prices and we could see 53 $ per barrel. At this level we expect the bulls to be more defensive.
We have a few patterns to trade intraday.
Our strategy is to sell the potential pullbacks and book profit at 53 $
(Click on image to enlarge)
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