Oil quotes could not overcome the resistance level and dropped once again. Brent crude at 11:15 EET was trading around at $65.44, whilst WTI with June delivery was trading at $59.63 per barrel. At Monday’s close, North Sea oil on June contracts was trading at $66.32 a barrel and the price of light crude with delivery in June at the close of the New York session was $60.43 per barrel.
Oil prices falling on Tuesday depends on both technical and fundamental factors. From a technical analytical perspective, oil prices were stuck again by the resistance line and couldn’t overcome it. Brent’s hard to break resistance is currently $70, whilst WTI’s is $62. Thus, the current decrease can be considered as a technical correction.
From a fundamental point of view, Saudi Arabia brought bad news to the market by publishing a statistic which showed that their export value is at its maximum since 2005.
Today the oil quotes will continue to fall. The price of Brent could drop to $64.8, whilst WTI could hit $58.8 a barrel.