WTI Crude Oil Daily Analysis – October 23, 2017

Crude oil prices edged higher on Friday and continue to trade high on Monday morning as political tensions in the Kurdistan region continue to disrupt crude supplies.

WTI Crude oil is trading at $52.09, up +0.52% as of 8:45 GMT.

According to Baker Hughes energy services firm, the amount of U.S. oil rigs drilling for new production fell by seven to 736 in the week of Oct. 20, the lowest level since June.

With the ongoing tensions between government forces and Kurdish militant groups, the demand will determine the prices along with the U.S market tightening. The production is still suspended as part of an agreement between the OPEC and non-OPEC producers to tighten the market.

Technical view

The Crude oil 4H chart has formed the “Ascending triangle chart pattern”. Crude oil prices retested the support slope line at $ 50.70 level. As seen in the chart, prices bounced back and likely to retest the resistance level again.

As per the pattern, a break above could lead towards $53-$55. Alternatively, a break of the support slope line could lead the selling pressure towards $49-$50.