US Crude oil inventories dropped nearly 5.3 million barrels from last last week beating expectations which helped the price clinch fresh multi-day highs above $71 per barrel. The surge came also on the back of a weaker Dollar and concerns about US sanctions on Iran and the arrival of hurricane Florence on the American shore also support the bullish price action of the Crude oil.
Crude oil prices retreated from the fresh highs after a divergence with the momentum appeared as we can see on the chart. The price is currently hovering just below the $70 level without finding any fresh momentum to continue its move. We expect a retreat towards the $69.5 support level and then we will be focusing on the $70.3 resistance level.
Support: 65.3 64.6
Resistance: 65.88 68.3