Crude Oil Retreats on News That Saudi Oil Output Will Return Earlier Than Initial Estimates
Crude Oil prices retreat from yesterday’s highs, trading 4.86% lower at $59.86 per barrel after news that Saudi Arabia’s oil output would return to normal levels earlier than initially thought in the next two to three week.
On the technical side, the bullish crude oil momentum holds despite the recent slump in prices. Bears are looking for a close below yesterday’s low at 58.88. If the price closes convincingly below that level, then the downward pressure can accelerate and reach the 100-day moving average at 58.80. On the upside crude oil immediate resistance stands at 62.59 daily high while more offers will emerge at 63.97 the highs from May 20th. The RSI 14 index is also correcting fast down to 57 retreating from yesterday’s 68 level. Volatility skyrockets as the developments in Saudi Arabia moving the price.