Oil prices extended losses after US crude stockpiles increased for the sixth straight week. Crude inventories rose by 3.2 million barrel from last week versus an expected 3.6 million barrel as US President Trump's presidential decree that global oil markets have enough supply to make up for any constraints from US sanctions on Iran, which come into effect on November 4th. On top of that, the US is aiming to impose fresh new tariffs on China, due to be announced early December, helping keep riskier assets such as oil under pressure.
Crude oil prices printed new lows during yesterday's session hitting $64.79 as they are hovering now around the $65 level. A huge divergence took place between the momentum and the price that shows a build up in the momentum but did not reflect in the price as we can see on the RSI. That is why we believe that a recovery is on its way but the downside has still more room so we will be focusing on the $63.5 support level.
Support: 67.00 / 66.77
Resistance: 68.39 / 69.50