Crude oil prices are returning to the week's low with WTI barrel retesting the $66 level as the market sees demand for oil dropping. Energy traders are reducing their oil exposure over fear that a continued equities slide will see oil demand head further south. On the other hand, EIA's crude oil inventories showed a rise in the numbers for the fifth straight week adding 6.3M barrel from last week versus an estimated 3.6M barrel.
Oil prices faced a huge sell off printing a 2-month low at $65.72 per barrel. Prices have been steadily declining for nearly four weeks, peaking at 77.00 in early October and tumbling steadily ever since. And for the first time since September of 2017, WTI barrel prices are trading below the 200-day moving average, currently sitting near 67.50. The RSI still looks mixed suggesting we are still not oversold and further decline is expected in the near term.
Support: 65.9 64.77
Resistance: 66.71 67.21