On Wednesday, crude oil prices fell dramatically as heightened trade war tensions between China and the U.S. is expected to damage the demand for oil. Oil prices fell more than 2% after China warned it would use the rare earth card in its trade war with the United States, triggering worries that an ongoing stand-off could burn crude demand.
There is a lack of control in oil prices nowadays because the markets currently find itself trapped amid supply uncertainties and anxieties about demand. Lately, the U.S. President Donald Trump said, Washington is not ready for a deal with China, although he believes an agreement could be reached eventually.
Taking a look at the technical side, U.S. Oil is trading distinctly bearish after breaking the $58.50 support area, which is now acting as a resistance.
On the lower side, crude oil is meeting support of around $57.30.WTI can resume selling trend till $56.60 on the breach of $57.30 today.
Crude Oil Trade Tips
Consider keeping an eye on $57.30 as the market has good chances of reversing above this level. Good luck!