WTI Crude Oil (current price: $45.64)
Oil continued to drift lower after a stronger morning session, as the resistance zone between $46.50 and $47.50 together with the declining short-term trend-line still provide plenty of overhead supply at the current rate. Support is at $44 and near the 200-day MA at $41.25, while the fundamental picture is still mixed. U.S. inventories have been declining recently, and production remained subdued despite the strong rally since February, but global demand is still weak and the Chinese economic slowdown is still a possible threat.
Our assessment: Oil is trading close to the prior of this correction around $45, and a possible new leg lower could mean the re-test of the $44 support, although the momentum indicators are already back to neutral territory.
