Oil accelerates its bearish momentum

WTI oil was consolidating around the 55 day EMA (purple line) for the last few weeks, with the 70.00 level acting as a good resistance zone. Oil has been pressured to the downside by the trade war between the United States and China. The trade war has lowered the demand for oil from China, which is one of the main commodities consumer in the world. The US oil exports to China have dropped 70% in the last few months when the trade war started between the two nations. The US oil inventories reading during today’s session showed that the oil stockpiles have lowered somewhat, but the gasoline reserves have increased. During today’s session, the price of WTI oil drops from to the 66.27 level, which acted as support in the past and may hold the price again this time. However, if WTI oil breaks below the 66.27 level, it may drop to the 200 day EMA (blue line), around the 64.17 level. On the other hand, if the price bounces to the upside, then the 70.00 level may act as resistance. Above the 70.00 level, WTI oil may have the road clear to visit again the peak at the 75.00 level.