US oil prices took a step back on Monday, knocked lower by rising Saudi Arabia production that threatens to more than offset market constraints expected on the back of US sanctions on Iran. Prices closed lower for the fifth straight day as US crude production looks set to start increasing again. Traders are also watching to see if Saudi Arabia and Russia will be piling into any gaps left in global oil markets by Iran as several countries begin to bend to US President Trump's will, a move that makes it difficult for a potential bullish push to develop.
Crude oil's price action was very choppy during yesterday's session with no clear direction ahead. The price is currently below the $68 level with very little movement seen. Momentum is slightly pointing towards the upside so today we will be focusing on the $68.13 resistance level.
Support: 65.3 64.6
Resistance: 65.88 68.3