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Crude Oil analysis – 2 April 2020
By: Ahura Chalki
After a horrible days or even weeks for American petroleum companies, Trump uses his credit to bring peace into the market.
WTI price fell sharply in recent weeks, started after that OPEC and OPEC+ (read it Saudi Arabia and Russia) could not agree on a common plan and then continued as a price war (At least in public media) between these two Oil-producing giants.
As I do, many other analysts also do believe that in this stage Russia has nothing to do with Saudi Arabia and it is all about American companies, which they were trying to get more parts of the market around the globe, which was not the favor of Russian companies, and since Russian production is much cheaper than the US, they can afford cheaper prices for Oil, which is not profitable for American companies, when it is lower than $40.
Earlier Today, Reuters reported that ” Crude oil futures surged on Thursday after U.S. President Donald Trump said he expected Saudi Arabia and Russia to reach a deal soon to end their oil price war and Russian President Vladimir Putin called for a solution to “challenging” oil markets.”
If we can see any real act or signal from the main casts of this show, WTI can move above $28, otherwise, the lower price still is the expectation.
WTI technical analysis:
Earlier WTI could breathe the key resistance of $23.60, (31. March High), trading above this level, supports the bulls, while returning under this level, with breaching the min support at $22.54, can bring the bears back into the power. Technically, WTI returned above the trend line and trading positively at the moment.
Pivot point: 22.50
Resistance levels: 23.20 / 23.68 / 24.31
Support levels: 22.00 / 21.30
Today, the expected trading range is between 21.30 support and 24.31resistance.
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