WTI OIL at five-week low, pressured by rising US output, weekly inventories build
WTI oil is holding near new five-week low at $61.21 and remains under strong pressure on Thursday, following sharp fall on Wednesday.
Oil price came under increased pressure after data showed US oil production rose above 10 million barrels per day last week and hit all-time high at 10.25 million barrels per day.
In addition, EIA report showed US weekly crude stocks rose by 1.9 million barrels, which was well below forecasted build of 3.18 million barrels but weighed on oil price.
Fresh weakness cracked 50% of $55.81/$66.64 rally ($61.23), eyeing rising 55SMA ($60.87) and psychological $60 support.
Daily techs are turning to full bearish setup and favor further downside, accompanied by strong bearish sentiment which threatens to further dent OPEC-led action to tighten oil markets by reducing global output.
Broken pivotal support at $62.50 (Fibo 38.2% of $55.81/$66.64) and former low at $62.83 (19 Jan) mark solid barriers which should ideally cap corrective upticks.
Res: 61.76; 62.50; 62.83; 63.46
Sup: 61.21; 60.87; 60.00; 59.45