The oil market was disappointed by even OPEC’s success in agreeing to another production cut, which will begin in the New Year. Other factors like slow global economic growth, and production cut by OPEC will not sufficient to overcome extra supply.
US Government shut down also one which affects its spending results less demand.
Russia major crude producer assured market will be more stable in upcoming year 2019.
Oil prices reached multi-year highs in early October but have fallen almost 40 percent since then and are now approaching their lowest levels .The U.S. crude oil contract has dropped almost 25 percent.
US sanctions on Iran oil export will have impact from New Year 2019.
WTI Crude oil bounced back from lows on Wednesday after strong recovery in strong US market and short covering ahead of crude oil Inventory data.
This price rise can be just short covering or reversal it will be matter of time and depend how inventory data and future events unfold.
Above $50 dollar is major resistance and supply zone with all trend indicator like MA on all lower and higher time frames are sloping downwards and points to same level $50.
Immediate price trading range developed is $44 to $48 above $48 new trading range emerges till $50.
Other indicator like MACD also pointing upwards above signal line and positive histogram above zero line.
On daily chart Bullish engulfing candlestick pattern formed with major support around $42 will act for short span of time, move below is limited till data not released.
On 28/Dec/18 US energy department will release natural gas and crude oil inventory data.
Survey forecast that U.S. crude inventories dropped 2.7 million barrels in the week