Oil prices were recovering from the weekly lows as investors booked profit into the close of the week. Oil prices fell after the US weekly crude oil inventories posted a surplus. Furthermore, speculation is rising that OPEC and Russia will cut production at the semi-annual OPEC meeting in June. The decline to the 57.50 level marks an expected correction in the larger term uptrend that oil prices are in right now.
WTI Crude Oil Could Maintain the Gains
The rebound from the 57.50 support level marks a test of the price area. The previously breached support level of 60.33 region could act as resistance if price continues the upward trajectory. In the near term, WTI crude oil could maintain the gains within the said price band. There is a risk that price could eventually retreat which will put the support at 57.50 at risk. It is likely that oil prices will further extend declines down to the 50 handle in the medium term.
