Crude oil prices has been sluggish in conviction and has subsequently lost its footing following the American Petroleum Institute reporting late on Tuesday that US Crude supplies rose by 6.8 million barrels for the week ended April 26. Asia's Crude oil imports from Iran rose to the highest level in eight months in March as buyers stepped up purchases to take advantage of waivers to the sanctions imposed by the US on Iran last November. Traders will now await the inventory data from the Energy Information Administration that will be released later today.
After surging as expected towards the $64.8 resistance level, Crude prices slipped again and retreated well below the $64 level. The price is currently approaching the long term support trend line presented on the chart and this time with a lot of downward potential before entering extreme conditions. With the price currently trading below the $63.43 resistance level, we will be focusing on the trend line and the $62.75 crucial support level with our expectations to the downside.
Support: 63.43/ 62.75
Resistance: 64.07/ 64.48