Crude oil prices continue to get hammered this morning as traders and investors weighed the uncertainties surrounding a supply decision from OPEC+ ahead of supply data yesterday and form later today. With the OPEC meeting coming up on June 25 and 26, while hardly a surprise, considering oversupply issues in the oil market and a need to act to stem a sell-off in the price, and not to mention all of the comments of late from Saudi Arabia's own oil minister, Khalid Al-Falih, the UAE Energy Minister said today that OPEC+ is close to reaching an agreement on extending production cuts. The weekly API showed a build in inventory, a surprise compared to a Reuters survey that predicted a 500,000-barrel drawdown. Later today, the weekly US petroleum supply figures will come from the EIA where a slight rise of 80,000 barrels in crude supplies for the week ended June 7 are expected.
Crude prices took a beating during yesterday’s session and continue to do so this morning as the black gold lost traction on the momentum yet again. The price is currently trading just below the 52.5 resistance level with no sign of recovery. We will be focusing on the downside and the crucial $50.80 to $51 support zone will be on our watch.
Support: 51.83 / 50.87
Resistance: 52.5/ 53.26