Oil Prices Down More Than $1
Both the West Texas Intermediate (WTI) and Brent crude oil contract prices fell by more than $1 Wednesday.
WTI crude oil for July delivery lost $1.71 during midweek trading, settling at $61.42 per barrel. The benchmark peaked at exactly $63 and bottomed out at $61.03.
“July WTI today broke down and closed below the uptrend line of support that goes back to the early part of February 2019,” said Steve Blair, senior account executive with the RCG Division of Marex Spectron.
“A breakdown and close below these levels would indicate that the market is poised to make a potential downside move to the next major support, which is at the $58.60 level,” said Blair, adding that resistance is now seen at the $62.60 and $63.00 levels.
July Brent crude oil futures shed $1.19 Wednesday. The contract settled at $70.99 per barrel.
“July Brent has not yet broken through the uptrend line of support seen on the daily and daily continuation charts at the $70.35 and $70.41 levels, respectively,” said Blair. “Like WTI, a breakdown and close below this uptrend line indicates a further downside move to the next support levels seen at $68.69 and $68.34.”
In addition, Blair commented that resistance is seen at $71.33, $72.48 and then $72.79.
Reformulated gasoline (RBOB) also ended the day lower. The June RBOB contract price settled at $1.99 per gallon, reflecting a nearly three-cent decline.
“June RBOB, like Brent, closed just above the uptrend support line on the daily chart, but unlike Brent the daily continuation chart closed below the uptrend support line,” Blair observed. “We will need to see more trading for confirmation as to whether this market is holding current support levels or will continue to break down further.”
Blair added that support is seen at the $1.9540 level on the daily chart for RBOB but down at $1.9115 on the daily continuation chart. Meanwhile, he said that resistance is seen at $1.9859 and at $1.9859 on both charts.
Also edging downward during the midweek session was Henry Hub natural gas. The June contract lost seven cents to end the day at $2.54.
“June natural gas has once again broken and closed back below the $2.578 level, which now becomes the new resistance,” said Blair. “Next support seen at $2.543 on the daily continuation chart but we would consider this a minor support level as it is settlement and intra-day price action penetrated this level.”
Subsequently, Blair noted that major support appears at $2.477.
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