WTI Crude Oil Daily Analysis – November 15, 2017
Crude oil prices dipped lower on Tuesday and continue to tumble on Wednesday morning setting near two-week lows after the International Energy Agency (IEA) revised down its prediction for global demand growth and said it expects U.S producers to raise output. By that, the IEA gave an alarm that global oil markets will be oversupplied through the second quarter of 2018. WTI crude oil is trading at $55.16, down -1.01% as of 9:00 GMT.
The IEA cut its oil demand growth forecast by 100,000 barrels per day (bpd) for this year and 2018, to an estimated 1.5 million bpd and 1.3 million bpd, respectively. The report showed, however, that OPEC members compliance with a deal to curb output improved, rising to 96% in October from 87% in September.
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The EIA International Energy Agency is due to release its data later on today.
Technical View
Medium-term analysis: Crude Oil 4H chart has formed the “ascending broadening wedge” pattern. The chart clearly indicates the acquisition of bearish momentum over the market in the last few sessions which confirms that sellers have taken control. The market is expected to fall further and extend the fall towards the support level near $54 for a retest.
Long-term analysis: Crude Oil daily chart has formed a “Rising wedge” pattern. The previous session has been bearish and has broken the support line. That confirms the sell signal in the market in upcoming sessions.