FXStreet (Córdoba) – Oil prices fell at the beginning of the week, with WTI crude oil futures down to $ 44.20 a barrel where they stand by the end of the day.
The black gold was weighed by a Reuters’ report saying that Saudi Arabia is likely to hold output in the 10.2-10.3 million barrels per day range in the fourth quarter, whilst demand will remain restrained. Additionally, weaker Chinese equities and record North Sea crude production data, added to global oversupply concerns, hitting prices.
WTI technical perspective
“Technically, the daily chart shows that the technical indicators have turned sharply lower from overbought levels, with the RSI now below the 50 level, which increases the risk of additional declines, whilst the 20 SMA remains flat around 43.00”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart the price is now well below its 20 SMA, whilst the Momentum indicator aims higher well below the 100 level and the RSI indicator consolidates near 40, supporting the longer term picture. Given that the price is now below the 45.00 level, the downward potential has increased with additional declines below the 44.00 level exposing a steady slide towards the 42.70 region for this Tuesday”.
Support levels: 44.00 43.40 42.70 Resistance levels: 45.00 45.80 46.40.
(Market News Provided by FXstreet)