WTI Crude Oil Futures (November): Does oil rebound finish?

Oil prices were pressured by downbeat oil demand predictions by various oil-industry participants. U.S. WTI crude oil futures (November) shed 3.2% to $39.29 a barrel on Monday, the lowest level in two weeks.

Energy 2

Russia's oil output was slightly up to 9.93M barrels per day for the first 28 days of September, compared with 9.87M barrels per day in August, according to Bloomberg. In addition, the resumption of Libya's oil production also increased the global oil supply. Traders are worried about the risk of the rising supply, but the oil demand is still struggling.

On the economic front, the American Petroleum Institute (API) reported that U.S. crude-oil inventories fell 831,000 barrels in the week ending September 25. Later today, the U.S. Energy Information Administration (EIA) will release official crude oil inventories data for the same period.

From a technical point of view, the crude oil futures posted another bearish candle and washed out the recent rebound in the last few days on a daily chart. It shows that the bearish side is still determining the trend.

Currently, the prices returned the level below the 20-day moving average. In addition, the prices may form a potential right shoulder. A break below the horizontal level at $35.40 would confirm the Head and Shoulder pattern.

Besides, the relative strength index is also capped by a declining trend line.

The bearish readers could set the resistance level at $41.70, while the support levels would be located at $35.40 and $33.50.

Source: Gain Capital, TradingView

Build your confidence risk free

More from Crude Oil

Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.