WTI oil price falls below $70 and hits new 2024 low

Oil prices remain firmly in red and dipped below psychological $70 level in early Wednesday, in extension of Tuesday’s 5% fall.

WTI contract price hit ne 2024 low, driven by growing concerns about global oil demand (boosted by Tuesday’s PMI data which showed that US manufacturing sector remains weak) and optimism that political issues that caused halt of Libya production could be resolved, in addition to OPEC decision to raise output from October.

Loss of $70 handle adds to negative signals as daily studies are in full bearish setup, although oversold conditions suggest that bears may pause for consolidation / limited correction, if fundamental picture remains unchanged.

Former base at $71.50/60 zone reverted to solid resistance which should ideally cap upticks and provide better levels to re-enter downtrend.

Caution on upside acceleration above falling 10 DMA ($73.86) which would sideline bears.

Res: 70.00; 70.77; 71.60; 72.00
Sup: 69.17; 68.79; 68.00; 67.70