Crude oil prices are trading well into the negative territory on Tuesday, taking the barrel of West Texas Intermediate to the area of daily lows of $60.64 per barrel. The risk-off mood has been picking up pace since Monday following rising concerns over the US-China trade friction despite both parties will meet later this week to resume talks in Washington. Adding to this, the American Petroleum Institute reported a build in crude oil inventory of 2.81 million barrels for the week ending May 3, coming in over analyst expectations of 744,000 barrels. However, the losses started to get erased this morning after that the Chinese General Administration of Customs showed on that China imported record high oil in an unexpected move. The China Customs noted that the surge in the Chinese oil imports is because the state-run refiners built up stocks of Iranian crude oil anticipating a sanctions clampdown.
After declining to a low of $60.64 during Tuesday's session and then closing just above the $61.5 level, Crude oil prices are back on the rise this morning after picking up some momentum. The price is currently trading just above the $62 level and the momentum is getting stronger as we can see on the RSI chart. A retest of the $62.75 resistance level is what we will be focusing on today and then a settlement above the $63 level.
Support: 61.97/ 61.55
Resistance: 62.32/ 62.75