- Crude's hopes for a higher future are looking rocky as supply continues to outstrip demand.
- The commodity is freezing in the charts as oversupply and risk-averse markets cool off buyers.
Crude oil has consolidated tightly into Friday's session and WTI is freezing at the 61.15 level.
Oil bulls have hesitated this week as reports continue to come out that suggest the oil supply pouring out of the US and other countries may not get eaten up by rising demand as quickly as many had hoped. The efforts by OPEC to stem the tide of oil oversupply are running into big roadblocks as oil continues to get pumped and produced at record rates, and the US is on pace to become the world's largest supplier of crude sometime this year or next, usurping Russia from the top spot.
On Thursday, the International Energy Agency (IEA) stated that the global oil supply increase in February of 700,000bpd from a year ago to brought the total supply up to 97.9M barrels per day. The IEA also noted that supply from producers outside of the OPEC led by the US is expected to grow by 1.8M bpd this year, compared to a 760,000bpd increase last year.
The strangle on in WTI crude is being held up by support from the 60.20 level, and a break in either direct5ion will run into immediate support at 60.85 or resistance stacked up from swing highs at 61.50 and 62.30, respectively.
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