The IEA Is Sounding the Alarm on a Major Oil Supply Glut. Sell Oil Here.

Core Viewpoint - January micro WTI crude oil futures are presenting a selling opportunity due to ongoing price weakness and bearish technical indicators [1][2]. Group 1: Technical Analysis - January Nymex crude oil futures have reached a 4.5-month low, indicating a downward trend in prices [1]. - The MACD indicator shows a bearish posture, with the red MACD line below the blue trigger line, both trending lower, suggesting that bears hold a near-term technical advantage [1]. - A breach of chart support at $57.00 in January crude oil futures would signal a selling opportunity, with a downside price objective set at $48.00 or lower [3]. Group 2: Fundamental Analysis - There are growing concerns about a global crude oil glut, with the International Energy Agency warning that the glut may exceed previous expectations [2]. - Heightened U.S.-China trade tensions and sanctions are likely to limit global economic growth, further impacting oil demand [2]. Group 3: Trading Strategy - Technical resistance is identified at $61.00, where a protective buy stop should be placed just above this level [3].