Crude Oil dropped amid cautious sentiment as a plunge in financial markets and dollar strength underscored concerns that growth may be slowing.
Technically now Crude Oil is getting support key level @ 4905 and below same could see a test of 4847 levels and resistance is now likely to be seen at 4988, a move above could see prices testing 5010.
Oil has been caught up by broad financial market slumps this month, with stocks falling again after reports the U.S. is planning an additional $257 billion worth of tariffs on Chinese goods if upcoming talks between Presidents Donald Trump and Xi Jinping fail to end a trade war between the world’s two largest economies.
Oil was also being weighed down by signs of rising supply from top producers. Russia has also indicated that it will provide enough oil to meet demand once U.S. sanctions hit Iran from next week.
In a sign that oil supply remains ample despite the looming U.S. sanctions against Iran’s petroleum exports, crude output from the world’s top 3 producers, Russia, the United States and Saudi Arabia, reached 33 million barrels per day (bpd) for the first time in September, data showed.
That’s an increase of 10 million bpd since the start of the decade and means that these three producers alone now meet a third of global crude demand. Iran’s seaborne crude exports, by contrast, have fallen from a 2018-peak of just over 2.5 million bpd in May to around 1.5 million bpd in September and October, data showed.
