Oil prices continue to fall as investors digest the continuous increase in US crude stockpiles. This week's stockpile increase meant that US crude supply increased for the sixth week in a row which puts downward pressure on prices. Adding to the downward pressure on crude prices, many economists and traders believe that global oil markets have enough supply to make up for any constraints from US sanctions on Iran. Additionally, prices continue to push lower from the demand side as the growing trade tensions between the US and China threaten global growth and future oil demand.
US WTI Oil breaks another support level at 64.65 exposing the current support level at 62.98. Momentum is clearly bearish as prices trade below the three major moving averages. Interestingly, WTI prices are continuously rejecting the 13-period moving average signaling strong bearish momentum and weak buying activity. Further losses are in place if prices manage to break below the 62.98 support, and the break of this support level will trigger a drop towards the next key support level at 61.84.
Support: 62.98 / 61.84
Resistance: 64.65 / 65.83