Crude oil prices are steady in a narrow trading range of 64.90 – 63.75. Well, multiple factors are impacting the market today. The IMF growth forecast tops the list. On Tuesday, the IMF (International Monetary Fund) cut it’s world GDP forecast again for 2019, down to 3.3% from its predicted 3.5% in January.
What it has to do with crude oil prices?
A drop in world economic growth signifies a less production and manufacturing activity than before. So definitely, the corporate sector will be demanding less of crude oil as production level is falling. Thus, a drop in crude oil demand places a bearish pressure on oil prices.
Moreover, the most contemporary factor is the sudden eruption of the long-simmering fight in Libya among rival parties. The attack on Tripoli by the Libyan National Army (LNA), an army headed by Khalifa Haftar, directed to a jump in crude oil prices. The investors triggered the crude oil buying to “Price In” the possibility of supply outages.
On the technical front, crude oil is facing strong support at 63.75 along with immediate resistance at 64.80. The bullish trend and exponential moving averages are suggesting a bullish bias of investors.
Key Trading Level: 64.19
Bearish breakout at 63.75 can lead oil prices towards 62.90. Whereas, the violation of 64.80 can trigger further buying until 65.50.