Home » Daily Oil Prices » Oil Prices – WTI Crude Oil 15th April 2009

Oil Prices – WTI Crude Oil 15th April 2009

Oil Price Chart - WTI Daily Oil Prices 15th April 2009

A lack of global demand continues to pressure the daily price of crude oil and with today’s inventory figures expected to show yet further increases in the stockpile, this can only add to the current bearish tone.   As we have seen recently, the combination of a slightly stronger US dollar against the Euro, combined with weakness in the equity markets, has been the catalyst for downside moves in crude oil prices in the last few weeks.  The EIA report provided little in the way of any surprise simply indicating a further weakening in world oil consumption and therefore adding further downward price pressure on the energy complex.

From a technical perspective daily oil prices are now consolidating into a pennant pattern of lower highs and higher lows, which could indicate an explosive breakout from the current narrow trading range.  Yesterday in early trading we saw oil prices move up and through both the 9 & 14 day moving averages to a high of $51.26, only for oil prices to fall back in the afternoon session closing the day on a down bar with a deep upper wick, suggesting further weakness to come.   This can be considered as a short term bearish signal, and depending on the oil inventory figures later this afternoon we could see a similar candle formed later today.  Given this narrow range trading is therefore extremely difficult at the moment, the ideal trade being a straddle whilst awaiting a clear directional signal from the chart and markets.

The short and medium term trends are sideways, the long term trend is bullish.

WTI:

Support:    $51.96 (yesterday’s low)                              Resistance: $55.79 (high of 03/04/09)

Support:    $50.15 (low of 08/04/09)                              Resistance: $54.69 (yesterday’s high)

Support:    $49.48 (40 day moving average)                        Resistance: $52.81 (9 day moving average)

OIL (BRENT):

Support:    $52.14 (yesterday’s low)                              Resistance: $55.41 (high of 06/04/09)

Support:    $50.96 (low of 08/04/09)                              Resistance: $55.17 (high of 09/04/09)

Support:    $48.53 (40 day moving average)                        Resistance: $54.44 (yesterday’s high)


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