During the previous session, the black gold fell sharply to break below $62.20 after the Energy Information Administration reported an inventory increase of 7.2 million barrels for the week of March 29, compared with a 2.8 million barrel build in oil stocks in the previous week.

Honestly, the report was quite shocking especially after the API reported a slight draw of -0.7M vs. 2.8M beforehand.

A legislation has been proposed lately, known as NOPEC, and exposes OPEC members to US antitrust law. However, Saudi Arabia is reportedly threatening to trade its oil in other currencies if the US accepts a bill authorizing antitrust lawsuits to be filed against OPEC members in US courts.

WTI Crude Oil – Trading Plan

Well, let’s see what comes later, but right now crude oil is facing strong support above 61.90 along with resistance at 62.20. It’s a very small trading range and may help us secure a good trade today.

Crude oil is likely to stay bearish below $62.20 with immediate support around $61.90 and $61.45. Below this, the medium term support stays around $60.40 today.

Support Resistance
60.96 62.27
60.08 62.72
58.77 64.04
Key Trading Level: 61.4

I’m looking to stay bearish below $62.20 with a stop loss above $62.50 and take profit around $61.40 today.

Good luck!