WTI Crude oil prices resumed the declines as fundamentals remained soft. Oil prices fell back to the previously marked support area of 51.70 on Monday. The American Petroleum Institute (API) will be releasing the weekly inventory report ahead of the EIA’s report later in the week. Last week’s report from the EIA on global waning demand continues to weigh on oil prices.
WTI Forms a Descending Triangle Pattern
The current price action suggests that crude oil prices are shaping into a descending triangle pattern. The support level at 51.70, therefore, becomes critical at this stage. A breakdown of this support could see oil prices extending the declines lower. Alternately, if the support holds, we could expect an upside breakout. This will likely see oil prices extending gains to the highs of 54.36.
