US OIL Hits Floor

WTI crude found support from a larger-than-expected drop in US stockpile. The price met selling pressure in the supply zone around 97.50 and a fall below 93.50 forced short-term buyers to bail out, driving up volatility in the process. 86.50 is a critical floor and its breach would invalidate the recent rebound, leaving the commodity vulnerable to a new round of sell-off. An oversold RSI may lead to some profit-taking, but a rebound could be short-lived as the mood remains cautious. 92.60 is a fresh resistance should that happen.

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