Prices of the barrel of the American reference for the sweet light Crude oil are sharply lower on Thursday, breaking below the psychological $60 mark hitting new 2-month lows. unabated jitters on the US-China trade war and escalating tensions around Huawei in the US and Apple in China have coupled with the uptrend in US crude oil supplies, particularly after the API and the EIA reported unexpected builds during last week. In the broader picture, and supporting prices, appear rising US-Iran tensions, turmoil in Libya, the so-called ‘Saudi put’ and the ongoing OPEC+ deal to cut oil output. However, US-China trade concerns remain far from abated despite the lack of fresh headlines as of late and emerge as the main hurdle for a more serious advance in Crude oil.
Crude oil prices continued to head lower even more during yesterday's session breaking all support levels and printing fresh 2-months lows after breaking below the $60 handle. The price currently found support around the $58 area as oversold conditions got extreme as we can see on the RSI chart. At this point we will be expecting a pull back and the level that we will be watching is the $59.28 resistance level.
Support: 58.02 / 56.69
Resistance: 59.28 / 59.99