Oil prices declined sharply yesterday with reports saying that China will respond to the newly-proposed US sanctions. On top of that, Crude inventories printed higher than expected yesterday by 1.4 M barrel. However, the broader outlook is still positive and the prices may climb above the $67 level.
Crude prices broke the $67 major support level to reach the $66.30 area with extreme bearish momentum. However, even though prices might still print new lows today, it is likely that they will eventually climb back up as the broader outlook still points higher. The next area we will be focusing on is the $68 resistance level.
Support: 67.64 67.02
Resistance: 68.64 69.15