Oil back below $45.00/bbl, posts 3% daily loss

By FXStreet In spite of dollar’s weakness, crude oil prices fell at the beginning of the week, with US WTI futures back below $ 45.00 a barrel, on speculation OPEC output surged in April to near all time highs.

According to a Reuters survey, the OPEC pumped 32.64 million barrels a day in April, up 170,000 barrels from its March output. Following the news, speculative interest ran to take profits out from the latest rally, sending US oil to a daily low of 44.53.

WTI technical perspective

“The black gold eased around 3%, after adding roughly 20% in April, and the daily chart shows that the price continues developing well below a bullish 20 SMA, currently around 43.25, whilst the RSI indicator retreated from overbought levels and heads lower around 61, and the Momentum indicator remains flat above 100, not enough at this point to confirm further falls,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, however, the risk is of further slides, as the technical indicators head lower below their mid-lines, whilst the price broke below its 20 SMA, currently around 45.60. A break below the mentioned daily low should open doors for a continued decline …read more

Source:: FX Street