Oil price weakened more than 1 percent on Tuesday as USD strengthened also because of investors concern on oversupply problem. US crude inventory is expected to rise 1,1 million barrels this week.

However, warning from emerging tropical storm around oil and gas hub at Gulf of Mexico managed to limit the fall of the oil price, as some energy company announced production disruption.

According to US Bureau of Satefy and Environmental, oil and gas operators at the Gulf of Mexico has halted their production worth of 168,334 barrels per day for oil and 190 million cubic feet per day for natural gas as attempt to anticipate the tropical storm.

Technical Analysis:

Oil price currently is under pressure for short-term outlook. The price is moving just below the resistance area at 46.39-46.80. Wait for a pull-back move to within the resistance area and wait for bearish signal confirmation to go short with 46.14 as target and 45.73 in extension.

Be careful if the price managed to break resistance at 46.80 as it may turn the intraday bias into bullish and possibly will push oil price up to 47.05-47.46.

Trading Plan:

Sell on bearish signal confirmation within 46.39-46.80; S/L @ 46.95, T/P @ 46.14 or 45.73

Oil Price Chart:

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.