WTI prices declined during yesterday’s session amid receding supply fears and API inventory build. Saudi Arabian Oil Minister’s comments that output will return to normal sooner rather than later was in the bears’ favor, in addition to the US President Trump’s tweet that he wants to avoid conflict in the gulf region. Moreover, adding more to the downside yesterday, was the weekly US oil stocks data as per the private survey of the American Petroleum Institute that marked an improvement from -7.2 million barrels prior to +0.529 million barrels.
Crude prices came under heavy pressure during yesterday’s session eliminating more than 5% from its previous gains after failing to hold on to the momentum. The price is currently hovering around the $59 level after the price found support by the $58.8 level. We will be focusing on the downside as the divergence between the price and the momentum continues to fuel the decline. The next level to watch will be the $57.4 support level.
Support: 58.8/ 58.26
Resistance: 59.28/ 59.99