Oil prices fell on Tuesday ahead of the US and China trade talks. The outlook remains grim for oil prices amid subdued demand.
Global growth is expected to slow which could put a lid on oil prices in the near term. Meanwhile, oil traders await the weekly crude oil inventory report. Oil inventories have been posting a build up over the past few weeks.
Will Oil Prices Continue to Fall?
WTI crude oil is testing the familiar support area of 51.70. The 4-hour Stochastics oscillator is pointing to a potential bullish divergence.
If there is a rebound, crude oil prices must rise above 53.55 to confirm the upside. The next main target will be the 57.50 level. Price action could rally to this level to reconfirm resistance.