Crude oil prices were lower again during yesterday’s session dipping below the 56 level as US government data revealed another weekly climb in domestic crude inventories and sentiment that Saudi Arabia has restored significant production capacity. All eyes were on the highly anticipated Energy Information Administration yesterday which showed that US Crude supplies had climbed for a second week in a row by 2.4 million barrels for the week ending September 20th. This was far greater than the expected drop of 190K barrels and weighed heavily on WTI prices. Meanwhile, markets were keeping an ear to the ground over the recent Saudi attack headlines and news had circulated that Saudi Arabia had restored its production capacity to 11.3 million barrels a day which is hugely greater than the 5 million barrels a day that were taken out of production by the attacks.
Crude oil prices extended their losses during yesterday’s session, dipping as expected below the $56 level and printing a low of $55.63 per barrel. The price is currently trading just above the $56.27 support level as the momentum moved away slightly from the oversold zone. We will keep focusing on the downside with the $55.06 support level on our watch before witnessing any significant recovery.
Support: 56.27/ 55.92
Resistance: 56.79/ 57.40