WTI Crude Oil Violates Upward Trendline – OPEC Meeting In Focus

It’s been a volatile session for crude oil as the bearish trend seems unstoppable, with U.S. crude touching its lowest level in nearly two months.  It’s all because of oversupply concerns.

• Recently, the U.S. output rose to 10.47 million barrels per day  – one of the highest levels till date.
  
• The OPEC members are also thinking of increasing the output in order to deal with the potential shortage from Iran. The U.S. is expected to talk about Iran’s nuclear program and may impose renewed sanctions on Iran.

For your information,  Iran is the third-largest oil producer in the Organization of the Petroleum Exporting Countries (OPEC) and the main supplier, particularly to refiners in Asia. Therefore, Asia’s petroleum refiners are struggling to locate alternative supplies in order to cope with the renewed U.S. sanctions against Iran. In order to deal with this situation, OPEC members will be meeting on June 22 to determine the crude oil output.

Crude oil has finally come out of the bullish trendline support of $65.50 and the next support is likely to be to at $64. Unfortunately, we missed the sell entry as the breakout occurred overnight. But, it will be nice to pocket the retracement above $64 today. Stay in touch for updated forex trading signals.

Support   Resistance

64.56     65.68
64.21     66.03
63.65    66.59

Key Trading Level: 65.12