WTI Crude Oil (current price: 39.90)
Oil is down by almost 5% this morning and it trades around the crucial $40 per barrel level, as traders weigh the consequences of the Doha meeting. All eyes will be in the commodity this week, with no further talks expected until June in the matter. Investors were hoping for a comforting agreement that could have provided some stability to the fragile energy sector. If the Black Gold can hold up despite the negative news this week, it could mean that the almost 50% rally of the last two months might continue in the coming weeks.
Our assessment: Oil might fall back to the $39 level after breaking below the short-term advancing trend of last week. Major support is at $36 below the market with the $42 level providing resistance.
