Trading Strategy for Crude Oil Next Week

As U.S. President Donald Trump pushes for an increase in domestic oil production and a reduction in energy prices, the prospect of declining profits may stifle drilling activities. If WTI crude oil hovers around $65 per barrel, shale oil operators may shut down 25 drilling rigs and keep U.S. oil production flat. A further drop in prices would actually reduce crude oil production.

With Trump's trade war weighing on the demand outlook, traders are bracing for an influx of Russian crude oil into the global market, and WTI crude oil is in the midst of its longest losing streak in nearly a decade.

The price of crude oil has been lingering at a low level. On the weekly chart, it closed with a bearish doji star, showing a double-bottom pattern. In the short term, the oil price is still fluctuating in the range below $68.5. If it fails to break upward in the future, there is a high probability of a continued decline.

USOIL Trading Strategy for Next Week:
Sell@67.7-68.3
TP:66-65

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