Crude oil faced many events and news yesterday as Reuters quoted three OPEC and industry sources saying that Saudi Arabia, OPEC’s No.1 oil producer, is seeking to keep prices between $70 and $80 per barrel. On another note, a slew of US oil rigs and drilling platforms were forced to go dark in anticipation of the tropical storm Gordon in the Gulf of Mexico, which shifted its course, eliminating the need to keep production facilities offline.
Crude oil prices did reach as expected the $71.20 level before free falling back below the $70 level. The $69 support level is currently under pressure with the RSI pointing towards negative momentum. A break below this level will extend the losses and the next level we will be focusing on is the $68.75 level.
Support: 65.3 64.6
Resistance: 65.88 68.3