July 25, 2019. West Texas Intermediate crude oil futures in the US and Brent, an international benchmark, are trading slightly lower on Thursday, following the sharp decline yesterday. The market also continues to move within the same range yesterday, which usually indicates investor indecision and a possible increase in volatility. In this case it probably indicates that the bearish break this week could have been a bit excessive. However, it could also indicate that sellers are organizing their troops to further sink the market.
At 08:34 GMT time, WTI crude oil futures for September are trading at $ 56.76, down $ 0.16 or -0.30% and Brent crude oil for September is $ 63.54, down $ 0.12 or -0.19%.
In case you haven’t noticed, this week there has been a drastic change in market sentiment. However, we have been warning that the events that supported the market were short term, such as the hurricane or tensions in the Middle East.
After the liquidation of positions throughout this week, traders are looking for a balanced area. OPEC cuts continue to offer support, and tension in the Middle East continues to be high. Although the US and Iran are scheduling meetings, the truth is that both sides are very distant and probably in these first meetings they will not reach important agreements. I believe that all that the announcement of the meetings has done so far is to postpone military activity.