WTI Crude Oil (USO) Trading Higher In Asia Ahead Of Inventory Data

$USO, $OIL

Brent (49.23) & WTI (46.51) have come down to support marks on the dailies and may bounce back towards 52 and 50 respectively, trend remains South

WTI Crude Oil prices declined 0.86% Vs the USD for the 24 hr frame ending 23:00GMT, closing at 46.32 as concerns about the global supply glut.

Crude Oil prices further came under pressure, after the American Petroleum Institute (API) reported that US Crude Oil inventory increased by 9.3-M bbl to 465.96-M bbl last week Vs market expectations for an increase of 2.8-M bbl

In the Asian session, at GMT0300, WTI Crude Oil is trading at 46.54 or 0.47% higher from Wednesday’s close.

WTI Crude Oil is expected to see 1st support at 46, a break there could push it to next support at 45.46.

WTI Crude Oil is expected to see 1st resistance at 47.02, a break there could drive it to next resistance at 47.50.

Crude Oil is showing convergence with its 20 Hr MA and is trading below its 50 Hr MA.

Trend: South (Bearish)

Position: Short

 

Crude Oil has fallen this year and US gasoline demand softened. WTI Crude Oil could fall to as low as 10 bbl as the Organization of Petroleum Exporting Countries (OPEC) engages in a “Price War” with rival producers, testing who will cut output 1st.

Iran is soon to release 53-M bbl to the market and will be producing up to 1.5-M BPD in 6 months or so.

Long term technical and fundamental outlook for both Brent and WTI Crude Oil is due South.

OPEC says it will cut production but is not doing that, and are going to see who can stand lower prices longest, since October of 2014 HeffX-LTN sees that Crude Oil is likely is headed for 20 – 22 bbl in the mid term.

Have a terrific week.

HeffX-LTN

Paul Ebeling

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