On Tuesday, the WTI crude oil is trading bullish at 59.62, adding +0.15% for the day. One of the major reasons behind bullish bias is the production facilities which continue to struggle in the U.S. Gulf following the last tropical storm incident on Saturday.
Conversely, crude oil prices remained under pressure as data on Monday revealed that China’s second-quarter GDP slowed to 6.2% from a year earlier, the weakest pace in at least 27 years. China is one of the biggest oil consumers, and there are concerns surrounding slowing economic activity in fuel and sluggish crude oil demands from the biggest consumer.
On the other hand, rising U.S. output will weaken efforts by Russia and Saudi Arabia to overcome global oil inventories by convincing suppliers in the Organization of the Petroleum Exporting Countries and outside OPEC to cut production.
Moving to the technical side of crude oil, it has already completed 50% retracement at 59.18 level. Black crack bounced back upwards and faces a solid resistance at the 59.85. Interestingly, it’s the same level that provided support to crude oil back on July 19 and now it’s working as a resistance.
Key Trading Level: 59.91
Zooming out on the hourly chart, we can also see a small ascending triangle pattern which is extending resistance at 59.90 along with support around 59.44. A bullish breakout of 59.90 can lead crude oil prices towards 60.45 today.
Alternatively, crude oil can stay bearish below 59.90 until 59.40 support today. All the best!