Crude oil saw a little correction to retest the $74.8 level as expected after some data showed a record production in Russia that contributed in this slide in prices. However, the Dollar's reduced momentum has limited some of the losses for the WTI Crude oil prices. Despite this retreat, the fundamentals keep on pointing to the upside as US sanctions and tighter global supplies remain supportive. US commercial crude inventories rose by 907,000 barrels in the week to Sept. 28 to 400.9 million, the private American Petroleum Institute (API) said on Tuesday and showed a fall by 158,000 barrels per day. Today's EIA's Crude inventories are also expected to decrease but all eyes will be on it.
Overbought conditions have led the price to retreat as expected and to retest the $74.8 level support level. We are still looking for an upward move to new highs but if we see a penetration of the smaller trend line presented on the chart, we might look for an extension to the last correction as the price might retest the lower trend line around the $74 level. 76.35$ is still our main level to watch.
Support: 73 72.73
Resistance: 73.5 74.25