Crude oil prices turn negative and crude oil next target $62
WTI crude oil prices edged lower on Friday as statistics indicating to an in progress expansion in U.S. output and worries that Saudi Arabia and Russia were ready to hike production weighed on sentiment.
According to data from energy services firm Baker Hughes - the number of oil rigs operating in the US increased for a fourth-straight week, rising by 1 to 863
As per the statement from the Energy Information Administration which was released on Wednesday, the U.S. oil output rose to a record 10.9 million barrels.
Crude oil prices had started the session lower after Russia Energy Minister Alexander Novak said Thursday after discussions with Saudi Energy Minister Khalid al-Falih that both nations decided to steadily increase production.
Crude oil prices chart has formed “Ascending broadening wedge pattern.” In this pattern, prices have already sliced from the support line, although it retested from the previous support line which has become resistance line. As per the rule, it has been completed and is now set to move as downside target at $61.95-$60.25. Current Resistance line is at $64.25 which might be expected to retest again if possible.
Traders should make a short entry. Sell on rise would be the most preferable trading strategy which will be helpful for your trading needs. Traders wait in anticipation for the OPEC meeting scheduled on June 22nd.