Oil falls back below $30.00 a barrel

FXStreet (Córdoba) - Crude oil prices fell for a second day in-a-row, still weighed by Chinese poor data that triggered concerns about decreasing global demand. West Texas Intermediate crude oil futures fell more than 5% to a low $29.70 a barrel during the American session, and settled just below $30.00.

Adding to fresh markets concerns are expectations of larger stockpiles in the US, to be announced during the upcoming session, and fading hopes for an agreement on production cut.

WTI technical view

“The daily chart shows that, after being rejected from the 61.8% retracement of the latest daily decline, the price is now struggling around the 23.6% retracement of the same rally, which suggests that further slides below the mentioned low can see the commodity returning to the 26.00 region”, said Valeria Bednarik, chief analyst at FXStreet. “In the shorter term, and according to the 4 hour chart, the bearish momentum is strong, given that the technical indicators head sharply lower near oversold territory, while the 20 SMA is turning lower well above the current level, in line with further declines”.

Support levels: 29.75 29.20 28.60. Resistance levels: 30.60 31.30 32.10.