Oil price accelerates lower as global inventories hit record

Slobodan Drvenica Windsor Brokers

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

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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