Crude Oil: WTI Stays Subdued As Bears Snap Towards $13 in Oversupply

Share On Facebook
share on Linkedin

Oil prices started on a sour note in the last week of April, dropping over 8 percent during Monday’s session on sustained over-supply fears. A barrel of the North American benchmark, West Texas Intermediate (WTI), is losing value close to $14.50 level, marking an 8.85 percent decline on the day.

USDWTI Price Analysis – April 27

Key Levels
Resistance Levels: $21.34, $20.08, $18.52
Support Levels: $13.43, $10.20, $6.45

USDWTI Long term Trend: Bearish

The moving average of 5 and a multi-day sliding trendline, around $18.52 and $20.08 levels simultaneously, tend to barricade the potential upside to the oil benchmark. While level $10.20 stays on the watchlist of the bears throughout the ongoing price falls.

After demonstrating three days in a row of reversals, June’s WTI futures decline 8 percent to a level of $14.50 before continuing into Monday’s European open. Producers will temporarily shut down the supply to balance the lack of demand which may cause more market instability as price swings to the downside before supply equals demand.

USDWTI Short term Trend: Bearish

WTI price action is currently trading at a $14.50 level beyond the near-term lower end of the range at $13.43 level. With the upward level of resistance shown at $18.52 in the near term, analysts expect prices to trade within that range.

On the upside, a break beyond $18.52 level would see oil prices challenging the $20.08 psychological level of resistance. Prices are somewhat likely to stay subdued in the short term and risk selling pressure, particularly with the storage concerns now lingering.



CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

Do you want to write for our Newspaper? Get in touch:

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V: D:20210725 11:48:29