The oil benchmark is trading in the red this Friday morning in Asia, having dropped sharply in the previous session on surging US production. Crude oil prices fell by 3% on Thursday after the Energy Information Administration data showed the US oil production hit a record high of 12.3 million barrels per day last week, rising by around 2 million bpd over the past year. More importantly, US oil exports rose above 3 million bpd for the first time this year, triggering fears that the market may remain well supplied despite the OPEC+ output cut deal and US' decision to force Iranian oil exports to zero.
Crude oil prices broke the support trend line presented on the chart as expected to the downside and fell by nearly 3% to settle finally this morning just below the $62 level. The price is entering in what it appears a consolidation phase after retreating from the oversold state. We expect this consolidation to widen its range before we focus again on the downside.
Support: 61.55/ 61
Resistance: 61.97/ 62.32