Oil settles lower despite stockpiles fall

FXStreet (Córdoba) - Crude oil prices turned lower in the American afternoon, after holding for most of the day around the daily opening. West Texas Intermediate crude oil futures jumped up to $38.97 a barrel following the release of the EIA weekly report, as inventories fell 3.6 million barrels last week, against expectations of a 500K gain. The rally however, was short lived, and the black gold plummeted to fresh daily lows of $36.85/bbl amid speculative selling interest and finally settled down 0.9% at $37.16.

Oil technical perspective

“The daily chart shows that the price has accelerated further below a strongly bearish 20 SMA, currently around 41.00, while the technical indicators have resumed their declines near oversold territory”, said Valeria Bednarik, chief analyst at FXStreet. “In the shorter term, the 4 hours chart shows that the price failed to extend beyond an also bearish 20 SMA, while the technical indicators turned strongly lower after correcting oversold readings, in line with a continued decline on a break below 36.62, the multi-year low posted this week”.

Support levels: 37.20 36.60 36.10. Resistance levels: 37.70 38.40 39.10.

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