Although WTI crude oil ended Friday strong and rose from $80 to $82.72, it dropped back today and is now priced at $77.31 per barrel.
West Texas crude is currently trading at $77.31 following the release of ISM Non-Manufacturing PMI (Nov) data from the United States.
Amid the market gloom, United States ISM Non-Manufacturing PMI (Nov) came out at 56.5, while a consensus of analysts was expecting 53.3. United States Factory Orders beat analyst expectations of 0.7% and the previous reading of 0.3% with new data of 1%. United States ISM Non-Manufacturing Employment (Nov) released today at 15:00 UTC with a figure of 51.5, while the previous figure was 49.1.
Despite being in the red so far in the current trading session, Crude Oil peaked above its 21 day Simple Moving Average around $82.43 — typically an early indicator of a new bullish trend beginning to emerge. In contrast, West Texas crude fell below the $79 support zone and moved $1.7 beyond it; the next level of support with significant buyer interest is estimated at $78.05. Price action pushed below a known Fibonacci support level at $79.49 by around $2.18 with prices hammering out a $76.77 – $82.72 range by session close.
Overall, looking at the technical analysis landscape, it seems WTI crude —which is currently on a downtrend— might reverse course and start pointing upward in the short term.
In the meantime, negative performances are also seen in other Energy as Natural Gas is down to $5.63, losing 65.1 cents, after closing at $6.28 in the preceding trading session. Heating Oil is trading around $3 (down 16.85 cents). After ending Friday's session at $85.57, Brent Crude Oil lost $2.57 and is trading around $83.
Furthermore, United States EIA Short-Term Energy Outlook is scheduled for tomorrow at 17:00 UTC.
The commodity has been trending lower for about 30 days. WTI crude traded as high as $124.77 before shedding 33.58% lower over the past six months.