- Crude oil prices drop for the third-day in-a-row, now looking at August lows.
- Stronger US dollar and demand concerns pushed oil further lower.
WTI (oil futures on NYMEX) dropped to $65.10, reaching a fresh two month low. The slide was capped for now slightly above $65.00 but the bearish pressure still persists.
Data released today included the weekly EIA report that showed a sixth consecutive build in crude stockpiles, up by 3.22 million barrels in the week ended October 26, below the 3.67M expected. Gasoline and distillate inventories posted larger-than-expected declines. The data failed to offer support to crude oil that continued to move lower. During the US session, the US Dollar Index reached the highest since June 2017 at 97.19. Gold and other commodities also moved to the downside.
Over October, crude lost more than 10% having the worst month since July 2016 and making a sharp reversal after hitting at the beginning of the month at $76.90, the highest level since 2014.
WTI Technical outlook
With WTI around $65.25, the daily chart shows it is poised to extend its decline as its developing below all of its moving averages, as technical indicators resumed their declines, now nearing oversold levels, explains Valeria Bednarik, Chief Analyst at FXStreet.
She explains that in the short-term, the 4 hours chart, shows risks tilted to the downside, with the upside facing resistance around the 20 SMA and as technical indicators maintain strong downward slopes.
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