WTI crude oil prices dropped dramatically over heightening trade war tensions between China and the US as investors believe that it would hurt the demand for oil. US Crude Oil is down 1.1% to $58.82 by now.
The economic calendar lacks top tier fundamentals, which is why traders are concentrating on the increasing trade tension between the US and China, the world’s biggest oil importers, to determine further trends in crude oil prices.
There is a lack of control in oil prices nowadays because the market currently finds itself trapped amid supply uncertainties and anxieties about demand. Although Trump believes that the trade war agreement could be reached eventually, Washington is not yet ready for a deal with China.
On the technical side, crude oil is trading sharply bearish after violating the $58.50 support area, which is now working as a resistance. On the lower side, crude oil is facing support of around $57.30. Crude oil can continue selling trend until $56.60 on the violation of $57.30 today. For now, let’s keep an eye on $57.30 as the market has good potential to reverse above this level.