Crude oil prices peaked at a near-term high with WTI hitting $70.40 on Tuesday, but was unable to challenge last week's high of 71.25 after US oil inventories showed yet another surprise build-up in their barrel counts yesterday. Stockpiles increased by 1.2M barrels since last week according to the API data, far from the expected -2.7M barrel. OPEC ministers are also scheduled to meet this Sunday, but no decisions or adjustments are expected to be made as they will be only discussing output policies and compliance. On the other hand, Saudi Arabia has recently mentioned several times that they have no desire to push prices above $80 which may be unavoidable as US sanctions on Iran are set to come into effect on November 4th.
Crude oil prices bounced higher from the $68.5 level all the way to the $70.40 level, but lost grip as overbought conditions emerged. The price is currently back on the run as it is eyeing to test the $70.50 level and eventually break above the $71 level, if the price manages to consolidate above the next resistance levels.
Support: 69.51 69.10
Resistance: 70.33 70.58