Crude oil prices came under renewed selling pressure on news that Iran would continue to increase its oil production to reach the market position it enjoyed before the sanctions, diminishing hopes of an output freeze deal amongst OPEC and non-OPEC producers.
WTI crude oil futures fell to its lowest level in 4 weeks at $35.57 a barrel in the US afternoon, and closed the day a few cents above it.
WTI technical view
“Technically, the commodity has fallen six out of the last seven days, and is currently below the 50% retracement of the February/March rally at $36.20, the immediate resistance. In the daily chart, the price is well below a bearish 20 SMA, whilst the technical indicators head sharply lower within negative territory, indicating some further declines for this Tuesday, towards 34.80, the 61.8% retracement of the same rally,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical indicators present a strong bearish momentum, despite being in oversold territory, whilst the 20 SMA accelerated its decline above the current level, in line with the longer-term outlook.”
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Support levels: 35.50 34.88 34.30. Resistance levels: 36.20 36.90 37.65. fxstreet