Crude oil is still being traded in quite a narrow range amid absence of new drivers on the market to form new trend movement. Oil prices largely held stable on Monday, regaining some early losses as investors took stock of global economic pressures that could impact oil demand. Pressure on the price is still being put by complicated situation in global economy. Coming data still points to slowing down of growth increasing investors’ concerns regarding the prospects of changes in energy demand. Russia, the world’s second-largest oil producer, reported on Sunday it did not meet its supply cuts commitment in September because of an increase in natural gas condensate output as the country prepared for winter.
Support factor for the market is situation on stock markets, where a higher demand for dicey and highly-profitable assets can be observed, that always produces positive influence on dynamics of the crude quotes.
On the chart sideways channel 57.00-60.00 is still in place. Inside this price channel locally we can expect forming of downward movement from upper boundary of the sideways channel towards lower wall.
Resistance levels: 60.00, 61.50, 64.00;
Support levels: 57.00, 55.55, 55.00.
Main scenario: Decline towards 57.00.
Alternative scenario: Gaining a foothold above 60.00 and growth towards 61.50.
Moderately-negative sentiment prevails on the market. Bearish signals dominate on the chart. We consider intraday short-positions from 59.00.
