Crude oil price declined sharply in the Asian session. It reached a low of 72.60, which was the lowest level since August 20. Will the price continue the downward slide?
2 November, OctaFX – The price of crude oil fell sharply yesterday as the US and OPEC flooded the oil market ahead of the US mid-terms.
Yesterday, data from OPEC showed that its members had increased production to the highest level since 2016.
The biggest gainers in production were Saudi Arabia, UAE, and Libya. Recent data from the US also show that the country is increasing its production sharply. All this has happened ahead of the Iranian sanctions that will begin on Sunday night.
A new report showed that the US will use satellite data to track the Iranian sanctions. Before, the country was able to avoid the sanctions by using unmarked ships to transport the oil.
Will Crude Price Continue Dropping?
The price of crude oil declined sharply in the Asian session. It reached a low of 72.60, which was the lowest level since August 20. This was a continuation of the downward trend that started in October 10.
The pair will likely continue the downward momentum as evidenced by the Ichimoku Kinko Hyo and the momentum indicators shown below.
The RSI is at the oversold territory, which is an indicator that the XBRUSD pair will drop further before it recovers. It will likely do this when it reaches the important support level of 70.
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