As expected, oil prices continued to decrease yesterday after the Energy Information Administration report on Crude inventories exceeded the forecasts by an increase of 6.4M barrels from last week. However, further production cap increases from OPEC remain a possibility moving forward as prices continue to stabilize on a longer term view.
The prices are back down testing support levels below the $68 level after they bounced back from oversold conditions. The momentum is still bearish but we expect a divergence which opens the possibility to focus on the $68.60 resistance level in the next 48hrs.
Support: 67.64 67.02
Resistance: 68.64 69.15