Crude oil prices fell over 5.50% on Thursday. The declines came late in the evening amid a mix of various factors. Earlier in the week, the EIA reported a drawdown in the stockpiles. This was further to the OPEC report about oil production slowing. However, oil prices ignored the fundamentals. The USD strength, along with the trade wars weighed on the commodity.
Crude Oil is Testing the Support
The decline in crude oil prices has sent the commodity down to the initial support level of 54.42. This marks the retest of the lower support. Currently, oil prices are attempting to post a rebound. But we expect price to settle back into the range between 57.50 and 54.40 region in the short term. A break down below 54.40 will trigger sharper declines to 50.00.
