The impressive draw in crude oil inventories estimated by the American Petroleum Institute (API) has given a lift to the price of the barrel, with WTI jumping from $54 to $55.50. Prices could have space for further growth, up to $56.50, where the next resistance area is placed. The general scenario of uncertainty, with the trade war proving to be a long game and fears of a recession (or at least of a slow-down of economic growth) just behind the corner.
All these elements are not supportive for the barrel. Vice versa, it seems likely that oil price would get a lift in case central banks confirm their dovish tone and turn it into action in order to sustain the economy and, indirectly, oil demand.
Chief analyst at ActivTrades and technical analyst for Italian newspaper 'La Stampa'. Carlo Alberto provides regular commentary for UK outlets including the BBC, Telegraph, the Independent Bloomberg & Reuters. He is also a weekly commentator for CNBC Italy and a columnist for La Stampa. He worked for Bloomberg as their Equity Research Fundamental Analyst before joining brokerage ActivTrades in 2011 to specialize in currency markets and commodities. In 2014 he published a 250-pages book on gold and the gold market, followed in 2018 by a new updated edition.
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© 2019 High Leverage FX - All Rights Reserved.