Oil price extends its near term corrective decline in Asian session, with WTI dipping to 75.63. The move came as Japan Prime Minister Fumio Kishida said he is considering releasing oil from its reserves, in response to US request to quell high energy prices. He told reporters, “we want to draw a conclusion after thoroughly considering the situation each country faces and what Japan can do.”
WTI’s fall from 85.92 high is currently see as a correction to rise from 61.90 only. Hence, even in case of deeper fall, down side should be contained by 61.8% retracement of 61.90 to 85.92 at 71.07, which is also close to medium term trend line support. But break of 80.32 resistance is needed to indicate completion of the pull back. Otherwise, risk will stay on the downside in case of recovery.