WTIUSD Chart Technical Outlook Crude Oil remains pressured on Chinese worries, support at $71.79 in play
Bounce or further losses? While the excellent US Nonfarm Payrolls report points to rising demand, bears remain dominant in oil trading. Concerns about China’s economy – the world’s second-largest – remain prevalent. Authorities are busy buoying the local stock market, but not the underlying economy. At the same time, US oil output continues to rise.
What about hostilities in the Middle East? The US launched further attacks at Iranian-backed militias in Iraq and Syria and vowed further action. However, officials repeat their intent to refrain from going on an all-out war with Iran – that is good news for oil. Clashes between both countries would likely result in the closure of the Straits of Hormuz, a critical oil chokepoint.
Technically, WTI Crude Oil faces some resistance at $72.98, followed by $74.51 and $75.54. Support is at $71.79, followed by $70.57 and $69.27. The broad trend remains sideways.
