FXStreet (Córdoba) – Crude oil prices extended losses into a fifth session Thursday, with WTI settling below $37.00 a barrel for first time in almost 7 years, after the Organization of the Petroleum Countries (OPEC) reported that they increased its crude production in November, fueling concerns about the global supply glut.
OPEC’s monthly report revealed that total production rose by 230,100 barrels a day from October, to 31.695 million barrels a day, largely due to higher output from Iraq.
WTI futures fell down to fresh cycle low of $36.52 a barrel and closed the day 1% lower at $36.78/bbl.
WTI technical view
“WTI presents a strong bearish technical tone according to the daily chart, with technical indicators having accelerated their declines and entered extreme oversold territory, whilst the price has extended further below its 20 SMA”, said Valeria Bednarik, chief analyst at FXStreet. “In the shorter term, the 4 hours chart shows that the price remains well below a strongly bearish 20 SMA, while the technical indicators maintain their bearish slopes near oversold readings, in line with further declines for this Friday.”
Support levels: 36.50 35.90 35.15 Resistance levels: 37.20 37.70 38.40
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(Market News Provided by FXstreet)