Oil price fell on Wednesday to new two-week low on strong acceleration after announcement on China tariffs.
Fresh weakness fully retraced Tuesday’s recovery after oil price peaked at $63.84, boosted by surprise drop of oil stocks (API report showed 3.2 million barrels draw in crude inventories against forecasted build of 1.7 million barrels).
Oil price maintains negative sentiment, boosted by increasing Russian oil output and holds in a downtrend from $66.53 (26 Mar peak).
Fresh bears broke through 30SMA ($62.80) and pressure pivotal support at $62.56 (Fibo 61.8% of $60.11/$66.53, break of which would generate strong bearish signal.
Focus turns towards EIA crude stocks report, due later today (build of 1.4 million barrels is forecasted), which would provide fresh direction signal.
Res: 62.80, 63.01, 63.62, 63.84
Sup: 62.56, 62.00, 61.63, 61.08
