The downward move of Crude oil has been on a break with an attempt to recover after hitting a 7- month low. The temporary rise in prices came on the back of some reports stating that Russia and Saudi Arabia have started discussions over possible curbs to output in 2019. Also, two OPEC sources said on Wednesday that OPEC and its allies may initiate output curbs next year to prevent the return of global oversupply. But the effect of these news did not last long as the prices are back on the lows after EIA reported that Crude oil inventories have risen by 5.8M barrels from last week versus an estimated 2M barrels.
Moving lower US Crude oil prices reached a key support level and a 7-month low at $62 and managed to break it. The price is currently hovering just below the $62 support level at $61.7 with a very bearish momentum as suggested by the RSI. There is no sign of reversal so far so we will be focusing on the next support level which is the $60.67 level.
Support: 61.20 / 60.67
Resistance: 62.04 / 63.50