Crude oil consolidation continues.
This article is originally referred from Orbex Technical Analysis.
WTI Crude oil prices continued to consolidate for the most of last week after prices slipped from highs above 72.21 to test the familiar support level at 65.80 – 65.46 level.
Oil prices slipped amid news reports that the U.S. administration had asked OPEC to raise supply in order to make up for the loss from Iran’s production.
The U.S. administration had withdrawn its support to the Iran nuclear deal while also threatening to impose sanctions.
OPEC members including Russian had previously pledged support to bridge the gap in order to maintain the production levels that was agreed upon previously.
On the domestic front, U.S. crude oil inventories continued to show a build up adding to the declines.
The prospects that Saudi Arabia is most likely to plug the production gap pushed oil prices lower.
From a technical perspective, oil prices continue to consolidate near the support level.
However, a break down could signal further losses in store.
To the downside, oil prices are likely to fall toward 61.74 level.
However, if oil prices manage to climb above the $65.80 level, we expect to see further upside.
Original Source: Orbex Technical Analysis