West Texas Intermediate Crude prices are under pressure this morning as they are extending yesterday’s downfall after printing a high of $53.72 per barrel. The Organization of the Petroleum Exporting Countries Secretary-General Mohammad Barkindo, who last Friday noted that a deeper production cut was among the options for OPEC and its allies to consider in December, reiterated that OPEC would do what it could with allied producers to sustain oil market stability beyond 2020, per Reuters, and helped crude oil prices limit its losses. However, after yesterday’s API weekly crude oil stock up to 10.5M in October 11 from previous 4.13M, prices are back near weekly lows as investors fear over-supply.
Crude oil prices were under fire again during yesterday’s session despite climbing towards the $53.77 resistance level to return almost to their weekly lows. The price is currently trading just above the $52.5 support level with the momentum being stuck in the neutral territory. We will be focusing on the downside and this time we will be watching this month’s lows especially the $51.83 support level.
Support: 52.5/ 51.83
Resistance: 53.26/ 53.89