Crude oil prices dropped during yesterday's session after the US saw record production as the Energy Information Administration reported that the US crude oil production reached 12 million barrels per day for the first time last week. The EIA also released weekly inventory levels wherein it followed the earlier industry report by rising 3.7 million barrels from the previous week. However, the early-day positive report from the US-China trade front is likely limiting the energy downside. Looking forward, energy traders are likely to concentrate more on the trade developments considering the affair between the world’s two largest economies.
Crude oil prices were dragged lower as expected to retest the $56.69 support level before regaining traction again. The price is currently holding above the $57 level and seems to be ready to set another upward move. The RSI retreated from the overbought zone but remains bullish so we will be focusing next on the $58 resistance level.
Support: 56.69 / 55.25
Resistance: 57.32 / 58.06