WTI oil accelerated lower in early US trading on Wednesday and hit session low at $73.40. Fresh weakness in the Wall Street pushed oil prices lower, with traders looking for the impact of Hurricane which hit the Gulf of Mexico.
With sanctions on Iran looming and pressure of US government to governments to cut imports from Iran to zero, Saudi Arabia will provide supply to Indian buyers which ordered oil shipments from Iran in November.
South-heading momentum indicators on daily chart support further weakness, as fresh bears approach key near-term support at $73.05 (Fibo 38.2% of $66.85/$76.88 / 08 Oct low), break of which would provide fresh bearish signal for further extension lower.
API crude stocks data are due later today, with benchmark EIA weekly crude inventories due on Thursday and expected to provide further direction signals.
Sustained break below $73.05 would open $72.30 (rising 20SMA) and $71.86 (Fibo 50%), while past four-day congestion top at $75.25 marks solid resistance.
Res: 74.35; 74.51; 75.25; 75.89
Sup: 73.05; 72.30; 71.86; 71.30
