WTI Crude Oil (current price: $52.88)
Oil turned lower once again this week, as the bearish fundamentals pushed the crucial commodity towards $52 resistance. WTI Crude has been trading in a narrow range for almost three months now, despite the rising inventories and output. U.S. Crude Oil Inventories hit another record high this week, and the positive U.S. economic releases were not enough to support the commodity yesterday. Global stock markets also turned lower following Wednesday’s surge.
Our assessment: Oil is now testing the lower boundary of the long-term consolidation pattern near $52.50. Strong support is found near $52 and below that around $49.50
