WTI continues to decline, even as Biden reverses policy
According to CFTC data, the net long position of crude oil speculators decreased by 21,944 lots to 71,587 lots, reflecting that market expectations of rising crude oil prices have cooled.
USOIL fell during the Asian session on Monday (November 18), trading around 66.90/barrel, a drop equivalent to 2.43% on the day.
Basically, although the geopolitical situation is heating up, its impact on oil prices is limited. The main reason is that global demand is expected to continue to decline, which is an important factor limiting the recovery of oil prices.
EIA inventories also increased last week, which is not favorable for a supply-side recovery in oil prices. According to CFTC data, the net long position of crude oil speculators decreased by 21,944 lots to 71,587 lots, reflecting that market expectations of rising crude oil prices have cooled.
Biden reverses policy on Russia-Ukraine conflict, allowing Ukraine's military to use US weapons to attack Russia's homeland President Joe Biden's administration has allowed Ukraine to use US-made weapons to attack Russia's homeland Russian land.
This is a major reversal in Washington's policy in the Russia-Ukraine conflict. Sources said Ukraine plans to launch its first long-range strike in the coming days, but they did not disclose details due to concerns about operational security. There are still two months until President-elect Trump will take office on January 20.
Ukrainian President Volodymyr Zelensky has for months asked for Ukraine's military to use US weapons to attack military targets deep inside Russia. Biden's policy reversal has created some risks in the market, but it is also not considered good support for oil prices when there is a very high possibility that when Trump takes office, all policies related to the War in Ukraine will be abolished.
On the daily chart,USOIL is still maintaining the main downtrend sent to readers in previous publications with the current short-term target at about 66.44USD.
The relative strength index (RSI) is pointing down with a steep slope and away from the oversold area, suggesting a broad bearish outlook ahead.
As long as WTI crude oil remains below its 21-day moving average (EMA21), it will still have a bearish near-term trend outlook. And once WTI crude oil is sold below 66.44USD it will have the conditions to fall a bit more with the target then being around 65.28USD.
During the day, the downtrend of WTI crude oil will be noticed again by the following technical levels.
Support: 66.44 – 65.28USD
Resistance: 68.11 – 68.77USD
USOIL fell during the Asian session on Monday (November 18), trading around 66.90/barrel, a drop equivalent to 2.43% on the day.Basically, although the geopolitical situation is heating up, its impact on oil prices is limited. The main reason is that global demand is expected to continue to decline, which is an important factor limiting the recovery of oil prices.
EIA inventories also increased last week, which is not favorable for a supply-side recovery in oil prices. According to CFTC data, the net long position of crude oil speculators decreased by 21,944 lots to 71,587 lots, reflecting that market expectations of rising crude oil prices have cooled.
Biden reverses policy on Russia-Ukraine conflict, allowing Ukraine's military to use US weapons to attack Russia's homeland President Joe Biden's administration has allowed Ukraine to use US-made weapons to attack Russia's homeland Russian land.
This is a major reversal in Washington's policy in the Russia-Ukraine conflict. Sources said Ukraine plans to launch its first long-range strike in the coming days, but they did not disclose details due to concerns about operational security. There are still two months until President-elect Trump will take office on January 20.
Ukrainian President Volodymyr Zelensky has for months asked for Ukraine's military to use US weapons to attack military targets deep inside Russia. Biden's policy reversal has created some risks in the market, but it is also not considered good support for oil prices when there is a very high possibility that when Trump takes office, all policies related to the War in Ukraine will be abolished.
On the daily chart,
USOIL is still maintaining the main downtrend sent to readers in previous publications with the current short-term target at about 66.44USD.The relative strength index (RSI) is pointing down with a steep slope and away from the oversold area, suggesting a broad bearish outlook ahead.
As long as WTI crude oil remains below its 21-day moving average (EMA21), it will still have a bearish near-term trend outlook. And once WTI crude oil is sold below 66.44USD it will have the conditions to fall a bit more with the target then being around 65.28USD.
During the day, the downtrend of WTI crude oil will be noticed again by the following technical levels.
Support: 66.44 – 65.28USD
Resistance: 68.11 – 68.77USD
Note
Long-standing geopolitical tensions in the Middle East have cooled following the announcement from President Biden of a ceasefire agreement between Lebanon and Israel. This development caused crude oil prices to be unable to maintain a slight recovery on Tuesday from the bottom of more than a weekNote
Note
USOIL continued to fall within the descending channel and closed below both EMAs, suggesting further downside potential.
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