Oil falls back below $44.00/bbl amid renewed glut concerns

By FXStreet Crude oil prices extended their declines this Tuesday, as following news of an OPEC output increase, China reported that demand stagnated in April, re-triggering concerns over a worldwide glut.

Light, sweet crude for June delivery fell to $43.35 a barrel on the New York Mercantile Exchange. WTI rose briefly above $46.00 last week on hopes US falling production will signal an end of the excess of supply, but speculative interest has quickly booked profits after the latest disappointing headlines.

WTI technical perspective

“Now trading near the mentioned low, the daily chart shows that the intraday decline stalled around a now flat 20 SMA, while the RSI indicator turned sharply lower, but remains above its 50 level, suggesting additional declines are required to confirm a steeper slide,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical indicators bounced modestly from near oversold territory before resuming their declines, whilst the 20 SMA now heads lower above the current level, in line with the longer term outlook.”

Support levels: 43.20 42.50 41.80. Resistance levels: 44.10 44.90 45.60.
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Source:: FX Street