Crude oil prices edged lower during yesterday's session and continue to do so this morning after the industry showed an uptick in production. The American Petroleum Institute said on Tuesday that US Crude inventories rose by 2.4 million barrels last week, to 480.2 million barrels, topping the expectations for a decrease of 599k barrels by a big margin, according to Reuters. The price dip, however, could be short-lived, courtesy of escalating tensions between the US and Iran. President Donald Trump on Monday threatened Iran with "great force" if it attacked US interests in the Middle East. Further, acting US Defense Secretary Patrick Shanahan said threats from Iran remained high.
Crude oil prices failed to maintain its upward move during yesterday's session and instead they fell back to retest Monday's lows. The price is currently trading below the $62.64 resistance level with the momentum clearly turning bearish as we can see on the RSI chart. The downside potential looks more probable and we will be focusing on the $62 support level.
Support: 63.43 / 62.75
Resistance: 64.07 / 64.48