December 18, OctaFX – The price of crude oil declined sharply in overnight amid worries over demand and oversupply. This came after some moderate gains yesterday as investors started to cheer the falling rigs in the US.
The price of Brent reached a low of $58 while WTI reached a low of $49.30. Traders will now focus on inventory data set to be released tomorrow by API and EIA.
Crude Oil Price Technical Forecast
The price of WTI crude oil declined sharply to a low of $49.30. This was the lowest level in a few weeks and is close to the lowest level this year. On the hourly chart, the price is below the 25-day and 50-day EMA.
The RSI has moved to the extreme oversold territory of 23 while the momentum indicator has fallen to the lowest level since December 6. The pair will likely remain at these levels as traders wait for inventory data tomorrow.
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