The WTI OIL price in US dollars is moving in wide consolidation, where the upper limit is around 55.00 range. On the other hand, support from the bottom provides zone around 43.30 level.
It was just the aforementioned support zone that price reached yesterday, setting another lower low. Within the consolidation we can notice a smaller downward trend, where the lows and highs shown in the chart below are formed at lower and lower levels.
It is possible we will see a further rebound from support area. However, if the downward trend is to continue, after a short break area around 43.30 may be broken. It would then open way to key support around the $40.
Important for the price of black gold may be today’s publication of inventories in USA (The EIA Crude Oil stockpiles report is a weekly measure of the change in the number of barrels in stock of crude oil and its derivatives, and it’s released by the Energy Information Administration. This report tends to generate large price volatility, as oil prices impact on worldwide economies, affecting the most, commodity related currencies such as the Canadian dollar. Despite it has a limited impact among currencies, this report tends to affect the price of oil itself, and, therefore, had a more notorious impact on WTI crude futures) which will be published at 3:30 GMT.