🛢Oil drops over 2%

Crude oil fell after yesterday reached its highest levels since March 18

WTI crude oil is losing more than 2% today and is testing the area around $ 61 a barrel. Yesterday the price was trading around $ 64 a barrel, the highest level since March 18 and around 5% from the pandemic highs around $ 68 a barrel. One of the reasons for stronger declines may be the strengthening dollar, although we did not receive any more important information from the market. OPEC + is unlikely to have a decision-making meeting next week, but last time the plan was predetermined for 3 months. One factor that may cause mixed sentiment in the oil market is uncertainty regarding demand. India is seeing a significant increase in coronavirus cases, which could delay the recovery in demand in the country. Also China is reducing oil imports after heavy purchases in March. The key support for WTI is located in the region of $ 58-60 a barrel and is marked with the lower limit of the overbalance structure.

Crude oil volatility may pick up at 3:30 BST after the release of US crude oil inventories. Yesterday's API report suggested a slight increase in inventories, while DOE expects a decline in inventories.

OIL WTI (OIL.WTI). D1 interval. Source: xStation5