Crude oil prices remained nearly unchanged during yesterday's and today's early session around the 63.5 level. While increasing stockpile support energy sellers, political hostilities in Venezuela, production problems in Libya and the US sanctions on Iran limit the black gold’s decline. The data from the EIA revealed that the inventories rose to the highest levels since September 2017 with an increase of 9.9 million barrels for the week ending on April 26. While EIA numbers signal supply increase, increasing political problems at Venezuela disturbs the oil output from an OPEC member. Furthermore, the US-China trade talks are also positive to energy prices as China is the world’s largest commodity user.
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 testing 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.
Support: 63.43/ 62.75
Resistance: 64.07/ 64.48