WTI oil remains under increased pressure and extends weakness on Wednesday, after falling 2.35% previous day.
Tuesday’s long red daily candle which formed bearish Outside Day, weighs on near-term action, with oil price being pressured by rising output (OPEC announced that production in July was the highest in 2018) and unexpected build in crude inventories (API report showed build of 5.6 million barrels vs expected draw of 2.8 million barrels.
Today’s release of EIA weekly crude stocks report will be closely watched for fresh signals (draw of 2.79 million barrels f/c vs previous week’s 6.15 million barrels draw), with another surprise, expected to further pressure oil price.
Fresh bearish extension probes through 100SMA ($67.98), firm break of which would generate negative signal for test of key near-term support at $67.03 (17/18 July higher base).
Broken 10SMA marks solid resistance ($68.69) which is expected to keep the upside protected and maintain bearish bias.
Res: 68.50, 68.69, 69.08, 69.90
Sup: 67.83, 67.57, 67.03, 66.36
