Crude Oil Prices extended its rally up to $32.72 a barrel at the beginning of the day, WTI crude oil futures fell over 5%, following Iraq’s announcement of record-high oil production.
Iraq’s oil ministry said its oil output had reached a record high in December, spooking investors and reviving concerns over a heavily oversupplied forex market, and putting crude oil prices back under pressure.
WTI crude futures settled at $30.34 a barrel, down $1.85 or 5.8% on the day, having retraced most of its Friday’s gains.
WTI technical perspective
“Technically, the daily chart shows that the crude oil prices faltered around a bearish 20 DMA and has accelerated well below it, while the technical indicators have been rejected from their mid-lines, and turned sharply lower, supporting some additional declines”, said Valeria Bednarik, chief analyst at FXStreet.
“In the 4 hours chart, the technical indicators have turned sharply lower from overbought readings, and the RSI indicator already heads lower below 50, although crude oil prices is finding some support in a bullish 20 SMA and the 23.6% retracement of its latest decline, around 30.15.
A break below this latter should see the bearish momentum accelerate, and fuel risk-averse trading across the financial world”.