Crude oil prices came under strong selling pressure on Friday with the barrel of WTI erasing all of the gains recorded last week and touched its lowest level since early April at $62.28 per barrel. In the first half of the week, the WTI rallied to its highest level since late October of last year as the United States' decision to end waivers for Iran oil sanctions caused investors to price tightening supply. However, with Saudi Arabia voicing its intention to ramp up its production to balance the market if needed didn't allow crude oil to continue to push higher. Moreover, the Energy Information Administration's weekly report showed a much larger buildup in crude oil stocks than expected and further weighed on crude oil prices.
Crude oil prices took a hit on Friday and plunged by 4% to print a low of $62.28 per barrel. The price currently holding just above the $62.75 support level as the bearish momentum is still in the oversold zone as the RSI shows us. The downside potential is still highly probable at this point but we have to be careful from the potential divergences between the price and the momentum. The next level we will be watching is the $61.97 support level.
Support: 62.83/ 61.97
Resistance: 63.43/ 64.07