WTI oil price fell on Thursday after recovery attempts from $67.02 double-bottom (also 100SMA) stalled on negative news that increased pressure on oil prices.
Unexpected strong rise in oil inventories (EIA report showed build of 5.8 million barrels in the past week, against forecasted draw of 3.6 million barrels and previous week’s massive 12.6 million barrels draw), increase in US oil production which hit 11 million barrels per day and also higher output from the biggest world oil producers, pushed oil prices lower.
Fresh weakness turns focus lower again for test of key supports at $67.02, break of which would generate strong signal of continuation of steep downtrend from $75.34 (04 July high).
Bearish techs and fundamentals continue to produce strong pressure, however, consolidation above $67.02 pivots may extend as daily studies overbought.
Double upside rejection at $69.04 marks strong resistance which should limit upticks and keep intact upper pivot at $69.45 (55SMA).
Res: 68.50, 69.02, 69.45, 70.00
Sup: 67.32, 67.02, 66.36, 65.71
