Oil price accelerates lower as global inventories hit record
|WTI oil fell sharply and hit session low at $68.36, coming under pressure after monthly report from International Energy Agency showed surge in OPEC production, with global oil inventories hitting record high.
Global supplies reached record of hundred million barrels a day, which could fully offset negative impact from expected from supply shortage on US sanctions on Iran.
Oil price was down nearly 2.5% for the day so far, on track for the biggest one-day fall since 08 August.
Reversal pattern is forming on daily chart and leaving a double-top at $71.38/25, which could spark further weakness.
South-turning 14-d momentum is breaking into negative territory and maintain bearish pressure.
Bears look for extension and close below 30SMA ($68.00) to open way towards $66.85 (07 Sep trough), break of which is needed to confirm double-top and stretch towards rising 200SMA ($65.73).
Broken daily Tenkan-sen ($69.11) marks initial resistance and is expected to protect the upside and maintain fresh bearish bias.
Res: 69.11; 69.46; 70.00; 70.26
Sup: 68.36; 67.91; 67.48; 66.85
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