Heading into the North American session, WTI Crude trader’s watched as its brief period of consolidation came to an end. Price action now seems poised to at the very least re-test its previous low just a week ago. Regrettably for the bulls, the fundamental picture continues to look fragile after estimates came out that the 2nd quarter.
May see a global surplus of 14 million barrels per day. Furthermore, the Russian and Saudi price war is continuing to flood the markets supply in the short term attempting. To capture more market share while weeding out weaker players. We know that the demand for oil in terms of price is comparatively inelastic in the short-run which is why
The markets short term trend remains negative and poised to slide lower. A price divergence is taking place on a daily chart, but May Crude support hits at $21.90 and must hold otherwise selling pressure can make this a move to $21.00 flat before seeing significant support. Areas of resistance include $21.60 and $22.00 flat.