Crude Oil Price Declines to $66

The price of crude oil resumed declines overnight and dropped near the $66 mark. This was mostly because of increased US crude oil stocks. Will the XBRUSD continue to drop lower? Gain insight into the following technical forecast.

November 15, OctaFX – According to the American Petroleum Institute (API), inventories rose to 8.79 million barrels.

This was higher than the previous week’s increase of 7.83 million. Another report from EIA suggested that US frackers were increasing production.

It was estimated that they will increase production by almost 150K barrels per day. Today, the EIA will release its weekly reading of the inventories.

XBRUSD Technical Forecast

Yesterday, the price of Brent moved higher slightly. Overnight, the XBRUSD pair resumed the decline and reached a low of 66. This was close to the previous low of 65.

On the four-hour chart, the pair’s double EMA show no signs of a reversal, which is an indication that it could continue the downward trend. This is confirmed by the MACD and the RSI as shown below. There is a likelihood that the pair will continue moving lower to below 65.


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