Crude Oil: Oil trading on a weaker footing this morning

Crude Oil

Crude Oil Movement

For the 24 hours to 23:00 GMT, Crude Oil rose 3.58% against the USD and closed at USD24.60 per barrel on Friday, amid optimism surrounding production cuts by US oil producers as well as the Organisation of the Petroleum Exporting Countries (OPEC) and its allies. Additionally, Baker Hughes reported that US oil drilling rig count dropped by 33 to 292 for the week ended 8 May 2020.

In the Asian session, at GMT0300, the pair is trading at 24.27, with oil trading 1.34% lower against the USD from Friday’s close, amid fears over supply glut.

The pair is expected to find support at 23.41, and a fall through could take it to the next support level of 22.55. The pair is expected to find its first resistance at 25.06, and a rise through could take it to the next resistance level of 25.85.

Crude oil is showing convergence with its 20 Hr and 50 Hr moving averages.

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