The price of the Crude oil barrel is currently trading at its lowest level in a month just above $68.5, loosing nearly 2% on a daily basis. This fall in prices came on the back of rising US Crude inventories and production as OPEC mentioned. A report from OPEC to WSJ explained that “a coming seasonal scale back in refinery demand could result in oil stock builds. The buildup amid the upward trend in US crude oil production, could be a bearish factor for oil prices in the coming few weeks”.
Oil prices broke below the $70 level after breaking the long term purple trend line to downside and settled below the $69 level. The RSI is pointing towards a huge divergence of the momentum with the price so a little pullback or a retest of the recently violated support levels at $70.3 and are expected to occur.
Support: 73 72.73
Resistance: 73.5 74.25