Crude Oil Price Hits a 7-Month Low, Chart Remains Weak
Crude Oil Price, Analysis and Chart:
- US-China trade war weighs down on oil.
- Global growth prospects continue to weaken.
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Crude Oil Hits a Seven-Month Low - More to Come?
Oil is weak and is likely to remain that way in the short- to medium-term as trade wars and global growth concerns continue to press down on the market. After US President Trump put an additional 10% tariff on USD300 billion of Chinese imports, the PBoC let USDCNH break above 7.00, drawing the ire of President Trump who labelled China a ‘currency manipulator’ – a charge China strongly denied. With neither side backing down, and with US President Trump likely to hike recent tariff levels, the trade war situation is expected to get worse before it gets better.
Brent crude hit a seven-month low early Tuesday around $59.00/bbl. before staging a mini-bounce back to $60.00/bbl. This move looks unconvincing and a further break, and close below, the $59.21/bbl. level will open the way for bears to attack the November 2018 swing-low at $57.78/bbl. before targeting the December 26, 2018 low at $50.25/bbl.Oil remains below all three moving averages and the 61.8% Fibonacci retracement level at $60.62/bbl. but is in oversold territory which may slow down any further sell-off.
Crude Oil Daily Price Chart (October – August 6, 2019)
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