Oil prices continued to drop this time to a fresh 2-month low on the back of rising US Crude oil stockpiles. US API weekly report showed a huge increase in stock to 9.88 million from previous -2.1 million in October 19. The heavy selling pressure also came after Saudi Arabia's Energy Minister Khalid Al-Falih said that it was possible for their output to increase by 1-2 million barrels per day so they can be ready to cover any shortage caused by the sanctions on Iran. On the other side, Iran's Oil Minister Bijan Zanganeh told Tasnim news that exports couldn't be stopped by the sanctions and argued that oil markets would stay volatile amid the US actions.
Oil prices faced a huge sell off printing a 2-month low at $65.72 per barrel. After breaking the $68.39 support level, the plunge penetrated all other support levels in between. The price is currently in a zone with a lot of support including a long term trend line. Oversold conditions became extreme and the momentum is still in decline so we may see another break to the downside and this time we will be focusing on the $64.77 level.
Support: 65.9 64.77
Resistance: 66.71 67.21