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.
Attention:
Forecasts which are made in the review constitute the personal view of the author. Commentaries made do not constitute trade recommendations or guidance for working on financial markets. Alpari bears no responsibility whatsoever for any possible losses (or other forms of damage), whether direct or indirect, which may occur in case of using material published in the review.
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