Crude oil came under a renewed pressure in the second half of the day after the weekly data published by the US Energy Information Administration revealed a larger-than-expected increase in the crude oil inventories. The barrel of West Texas Intermediate lost more than 3% from its value between yesterday's and today's early session. According to the EIA, commercial crude oil inventories in the US rose 4.7 million barrels in the week ending May 17 to miss the market expectation for a draw of 600K barrels. Meanwhile, Treasury Secretary Mnuchin today told reporters that he didn't have any plans to travel to China for the next round of trade talks yet, suggesting that the trade dispute is unlikely to be resolved anytime soon and reminding investors of its potential negative impact on the oil demand outlook.
Crude oil prices plunged by more than 3% as this morning breaking all near support levels after failing to break to the upside on Tuesday. The price is currently trading just below the 61 level with an overextended bearish momentum who still got more room to go before entering the oversold state. The 60.55 is the level to watch before focusing on a correction to the upside.
Support: 60.55 / 59.99
Resistance: 61.05 / 61.31