Crude Oil drops to Support
29-05-2018 10:30 AM
Oil prices continued to drop on Monday as investors weighed the likelihood of the Organization of Petroleum Exporting Countries and Russia stoppinglimiting production levels, while increasing U.S. shale output also reduced sentiment.
OPEC and Russia were informed last week to consider lifting production to meet shortfalls from Iran and Venezuela. Russian energy minister Alexander Novak said Saturday that a return to oil production levels that were in place in October 2016, the baseline for the current deal to cut output, was one of the options being discussed.
Novak specified that any decision would be made at the meetings of OPEC and non-OPEC countries in Vienna on June 22-23.
Crude oil prices reached support line at $65.75(4465) and the 4H chart has formed “Rising wedge” pattern. In par with this pattern, prices retraced to $67-$68(4525-4600). RSI overbought reduced overheating from 70% to 35%. A bounce back from $66.50(4500) is likely while it hits 30% level. On the alternate scenario, if crude oil prices close below $65(4400), the trend could continue and result in a massive fall up to $60(4050), Crude oil trader should monitor price values.